New Macau gaming bill advances to final vote
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Bank of America said the final version of the gaming law passed by the Macau Legislative Assembly reflected the amendments that have been revealed in the past couple months and were in-line with expectations.
The amendment bill allows for six new concessions, with a maximum term of 10 years and three-year extension possible under certain circumstances.
The changes included a minimum gross gaming revenue requirement for each gaming table and slot machine, which BofA noted is to make sure that the operators can have a good utilization of the tables/machines. Satellite casinos will be allowed to continue to operate under a management fee agreement but cannot participate in the profit sharing or commission agreement with gaming concessionaires. The concessionaires or any of their +5% shareholders may not directly hold the capital of other concessionaires, but can hold up to 5% indirectly. The concession holding entities cannot be listed publicly. In addition, a minimum capital requirement of 5B patacas must be maintained throughout the license period.
The gaming law is expected to be passed by the Macau Legislative Assembly by next week.
Heading into 2022, the potential gaming law changes and awarding of concessions in Macau were two of the biggest consideration for long-term investors.
Macau casino stocks: Wynn Macau (OTCPK:WYNMF) (OTCPK:WYNMY), Wynn Resorts (WYNN), Sands China (OTCPK:SCHYY) (OTCPK:SCHYF), Las Vegas Sands (NYSE:LVS), MGM China (OTCPK:MCHVF) (OTCPK:MCHVY). MGM Resorts (MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF) (OTCPK:SJMHY), Melco Resorts & Entertainment (MLCO), Studio City International (MSC).
