Jockey Club

Mutual agreement on contract termination to trigger return of MJC security deposit

The termination of the concession contract for horse racing and betting activities, achieved through agreement, will result in a refund of an approximately MOP15 million security deposit to the Macau Horse Race Company, Ltd. (MJC) under section six of the agreement signed between the government and the company.

The agreement specifies at section six, “the refund of the security deposit paid under the terms of Article 26 of the contract granting the exclusive operation of horse racing will only be carried out after adequate treatment of the matters provided for in this contract and without any compensation or payment of any amount in debt from the second party [MJC].”

The matters governed by the contract relate to the handling of horses as well as workers’ labor rights.

Although the security deposit amount is not explicitly stated in the agreement, previous contracts reviewed by the Times indicate that this sum is linked to the annual land rent of the MJC and should be regularly updated based on the annual land premium.

According to information from the last contract in 2018, this sum is estimated at MOP15 million, a figure that the government must reimburse to the MJC. However, account reports from the Gaming Inspection and Coordination Bureau and Financial Services Bureau reveal that this rent amount has been waived over several years.

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