Commission continues negotiations with seven concession bidders

The government conducted another round of negotiations with the seven bidders for the city’s 10-year gaming concessions yesterday.

As cited in a TDM report, today’s meeting with the companies will be the last and that the government and bidders still seem far from a final agreement.

The seven bidders competing for the government’s six licenses to operate casinos started their negotiations with the gaming tender commission in September, and have reportedly held three rounds of talks.

Following these talks, the competitors are required to submit an amended proposal based on the discussions, along with the total amount of investment they will make throughout the following 10 years.

In an earnings call with analysts last week, Las Vegas Sands, parent company of Sands China, revealed it has held several rounds of discussions with the government regarding the current gaming tender deliberation, and is expecting a notice on the next development by the end of the month. 

According to the group, the “timetable remains the same.”

Casinos have been suffering from cash bleed since the peak of the pandemic, following strict border restrictions to adhere to Beijing’s zero-Covid policy.

September has been another bleak month for the city’s casinos as revenues plunged 49.6% year-on-year to MOP2.96 billion, another blow to the sector as China’s lockdown continues across the country. 

Analysts have expressed concern about cash burn rates in the gaming sector and are particularly doubtful about the ability of gaming companies to survive under harsh operating conditions.

Seven companies submitted proposals from September 13 and 14, where the opening of bids took place on September 16 in the presence of representatives and local government authorities.