The Macau government’s contracts with the six gaming concessionaires stipulated that an additional 20% of its pledge in the non-gaming investment will be required if gaming revenues recover to MOP180 billion this year.
Secretary for Economy and Finance Lei Wai Nong disclosed the information to the press, noting that authorities have indicators, requirements, accounting and review mechanisms every year.
All six gaming operators have disclosed such information via filings to the Hong Kong Stock Exchange back in December, last year.
Following winning licenses to operate late last year, and under the city’s biggest gaming law overhaul, the six casino operators agreed to invest a total of MOP118.8 billion after being granted 10-year operating licenses, with the bulk of the money pledged to non-gaming projects.
A total of MOP108.7 billion – more than 90% of their total investment – was pledged to be spent on “exploring overseas customer markets and developing non-gaming projects.”
The city’s casino recovery is sustaining its momentum, with gaming revenue in August soaring a staggering 686% to MOP17.2 billion from a year earlier to the highest level since January 2020.
Up until August, gaming revenues had already soared to MOP114 billion, suggesting that the city can accumulate MOP130 billion for this year, a figure initially forecasted by the government.
Meanwhile, a report released by Citi Research shows that gross gaming revenues for the first 10 days of September approximated MOP4.3 billion, implying a daily run-rate of MOP430 million.
“There are still a few months left in this year, and we will not evaluate the annual gaming revenue for the time being,” Lei told the press, as cited in a Macao Daily News report.
“We are currently taking one step at a time and doing a solid job in related work. The [gaming operators] made a commitment to the SAR government, [to] invest in accordance with the commitments and requirements of the contract,” he added.
Both Melco and MGM recently said they are financially ready to further invest in the market.
Moreover, the big six are also expected to contribute to urban renovations of historic neighborhoods and landmarks, and the organization of arts events in each area, of which the revitalization of Rua da Felicidade and Barra are now underway.
