Macau Casino Shares Drop as Government Begins Review
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Macau's casino operators will have to go through a rebidding process next year to renew their gambling licenses. The local government officials have kickstarted a regulatory overhaul process. A 45-day public consultation began on Wednesday with the aim of gauging public opinion on regulatory reform. Macau gaming stocks fell as much as a third on Tuesday, losing around $14bn in value.
The government is consulting on proposed changes to the Macau casino industry. The consultation will last until October 29. JP Morgan has downgraded its estimations for the industry as a result.
All six Macau's casino operators currently operate through government-granted concessions. After SJM and MGM China paid $24.8m each for license extensions in 2019, all concessions expire in June 2022. Before the government renews those licenses, officials intend to finish their gaming law revision by Q4 this year and then assess a draft bill.
