Gov’t to lower GGR forecast
Chief Executive Ho Iat Seng revealed yesterday that a revised budget will be presented to the parliament because the government estimate of the city’s gross gambling revenue (GGR) has fallen.
Ho said, on the sidelines of yesterday’s opening ceremony for the new health service center in Seac Pai Van, that his government will lower its forecast for this year’s figure. The cause of the drop is attributed to the precarious Covid-19 conditions across mainland China for the year so far.
This year has not been easy for the country’s infection containment. Outbreaks, and therefore lockdowns, have been seen in several places on the mainland, with major cities such as Guangzhou, Beijing and Shanghai being affected.
As such, the GGR estimate will be lowered from the previous expectation at MOP130 billion. A reviewed budget will be delivered to the parliament to be legislated.
For the time being, Ho does not expect that the validity period for nucleic acid tests (NAT) for border-crossing purposes could be extended further. “Seven days is already the longest validity period in China,” he explained.
On the other hand, he was also asked about speculations that Beijing may further restrict its issuing of Macau travel endorsements to mainland residents. Ho clarified that the restrictions were not only levied on tourists to Macau, but also on cross-province tourists. However, he believes that restrictions will be loosened after the Covid-19 condition stabilizes.
While speaking on “Satellite Casinos” – those that are not located within properties of concessionaires – Ho said that the current review on the Gaming Law (No.16/2001) attempts to make room for the government to assess cooperative agreements made between concessionaires and Satellite Casino owners.
In the current version of the law, there is no attempt to define the concept of a satellite casino. Ho said that in the present review, the government is not trying to systemize details of the cooperative agreements but to propose a legal position for the type of casino.
Ho also denied that the government had made any legislative U-turn. It was originally proposed that the concessionaires must acquire the ownership of its satellite casinos within three years following the promulgation of the new law.
Last month, it was suddenly revealed that the government reversed its position, allowing concessionaires to operate casinos not under their ownerships on rent. The new proposal has not made any reference to the level of rental.
The government’s revised model is understood generally as the incumbent mode of operation.
Following the first announcement on the tighter regulation on satellite casinos, several such establishments announced that they would shut down, with the Grand Emperor Casino being the first. It will cease operations on June 26.
It was also reported by local Chinese media Exmoo, citing the head of a local junket association, that between six and eight satellite casinos would soon cease operations. However, the cause of the closure was not attributed to the government’s proposal in the law review, but to the plunge of tourist arrivals. AL
