Macau: Casino operators release weekly spending estimates on non-gaming activities for next 10 years

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The casino operators (concessionaires) of Macau, whose licenses were effectively renewed recently, have revealed the breakdown of the investment that they have planned to make over the contract period in a press conference on Saturday.

The concessionaires are going to spend around $15 billion over the next 10 years. The majority of funds have been allocated to non-gaming activities and the promotion of foreign visitation to Macau.

The six casino operators are MGM China, Wynn Macau, Sands China, Galaxy Entertainment, Melco Resorts, and SJM Holdings. The new contract period for the six companies will commence from 1 January 2023.

A report by Inside Asian Gaming shows the weekly spending allocations by all companies which is given in the table below –

                                                         Courtesy – Inside Asian Gaming

The table shows that the combined proposed spending by all the casinos sits around $26.2 million per week for 10 years on non-gaming activities.

The concessionaires also mentioned the non-gaming projects that they will be spending on in which can be seen below –

Courtesy – Inside Asian Gaming

While some of the projects were not mentioned by the concessionaires, it does not necessarily mean no investment will be made towards it.

The Macau government is looking to boost tourism through the casino operators not just through casino visitation but also holistically after suffering a massive hit due to Covid-19 and the resultant lockdowns in the past couple of years.

Along with their non-gaming obligations, the operators are also expected to adhere to stringent Corporate Social Responsibility (CSR) standards, especially those that pertain to the protection of local workforce and their ability to advance their careers.

The Macau administration has already declared its intention to create official procedures to check on the efficiency of and adherence to these promises made by the concessionaires.