Analysis | The fringe players keeping a close eye as 2022 edges closer

The current gaming concessions are due to expire on June 2022, but little information has been disclosed by the government regarding how the process will be managed or whether the number of licenses will stay the same. Many will be watching closely for a chance to pry open the 300-billion-pataca ($37.5 billion) market.

Some analysts have suggested a further liberalization that might see licenses extended to influential businessmen on the fringes of Macau gaming.

One such player is junket boss Alvin Chau, whose Suncity Group was in the news this month after a mainland Chinese media entity accused it of being involved in the running of online casinos and proxy betting services, both forbidden in the Macau SAR.

Both Chau and Suncity strongly denied the allegations, but said they would adopt Macau law for the group’s overseas operations in a bid to prevent similar accusations in future.

In May, Suncity executive Andrew Lo confirmed widely-held suspicions that the junket promoter was interested in bidding for a Macau casino concession.

However, those hopes may have been dashed by the recent media allegations levied by Economic Information Daily, an affiliate of Xinhua news agency.

In response, the city’s casino regulator stressed that any violation of the law by a junket promoter – even if such a violation takes place outside of Macau – could have implications for the suitability of the junket to operate in the SAR.

Pansy Ho, co-chairperson and executive director of MGM, said earlier this month that the basic structure of the gaming concessions should remain the same past 2022, with all six operators receiving a new license.

Speaking to Portuguese news agency Lusa, Ho said that Macau should be careful not to let the question of the number of licenses overshadow discussion of the actual needs of the territory.

But businessman and former legislator Chen Meng Kam would probably disagree.

He said last year that he was thinking about bidding for his own casino license. He also said that more licenses should be made available and that “Macau people” should be allowed to compete for one.

Chan’s Golden Dragon Group already runs satellite casino hotels under service agreements with SJM Holdings and Melco Resorts and Entertainment.

David Chow of Macau Legend Development, which also operates satellite casinos that rely on the gaming license of SJM, is another candidate. He said that the government should consider granting another two gaming concessions to benefit Macau’s overall development.

International players may be interested in the opportunity too – providing that it does not interfere with their designs on Japan.

In 2017, Melco showed its willingness to give up control of a casino resort in Russia to improve its chances of winning a license in Japan. Earlier this year, he bought a 20% stake in James Packer’s mostly Australian operator Crown Resorts, a former partner who completed his withdrawal from Macau in 2017.

Others interested in the opportunity include Jay Chun’s Paradise Entertainment Group, which provides gaming management services to four local venues, and Genting Bhd, whose Chairman and CEO Lim Kok Thay said he is interested in pursuing both a Macau license and the opportunity in Japan.