Negotiations between the gaming concessions tender commission and the seven companies that submitted bids to the new gaming concessions have reached an apparent deadlock, TDM Radio reported, citing inside sources.
One of the major points of disagreement between the government and the bidders relates to the border restrictions enforced due to the Covid-19 pandemic.
TDM Radio said that the government and the bidders have made no major advances in the first two meetings. All seven bidders are apparently insisting on being told the government’s concrete plans for the future of gambling, specifically seeking details on the real conditions that the new concessionaires will encounter from January 1, 2023, assuming that pandemic border restrictions are still in place.
On the other hand, the tender commission wants to know the concrete plans and proposals from the seven competitors for the development of the industry over the next 10 years with a particular focus on non-gaming elements.
The government is asking the bidders to narrow down the ideas initially expressed and compromise on a concrete sum for investment, as well as to specify the projects to be developed over each year of the new concession contract and deliver a concrete timetable for each.
The bidders responded that they cannot provide a concrete timetable and investment plan given the uncertainty caused by the border restrictions and the absence of a timeline for the normalization of border openings and air travel, and, consequently, the operation of the casinos.
In reply to the government’s position that no new land plots would be designated for gaming purposes, some bidders are speculating that they may redevelop some of the sites already in use, repurposing them for different uses, TDM Radio said. This might include spaces currently being used as car parks or other complementary facilities.
On the government’s side, the thinking appears to be that the existing facilities are more than adequate for the needs of the concessionaires for the next 10 years. This takes into account the strategy suggested on several occasions by both the Chief Executive, Ho Iat Seng, and the Secretary for Economy and Finance, Lei Wai Nong, that the main focus for gaming concessionaires should be to attract visitors from foreign countries and not those from the mainland, as has been the case for the past 20 years.
All parties are due to return to the negotiation table within the week following the interruption caused by the National Day Holidays.
