Reports: Macau casino operators may invest around $12 billion over next 10 years

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Local broadcaster TDM claimed that over the next ten years casino companies competing for licenses in Macau are projected to invest a total of about 100 billion patacas ($12.4 billion).

The seven applicants competing to get one of the six slots are Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts and SJM Holdings, as well as new entrant Genting Malaysia.

Apart from Galaxy Entertainment and Sands China, the other companies will contribute less than 20 billion patacas each, making the total investment reach around 100 billion patacas, according to TDM.

TDM also reported that negotiations with the Macau government are nearly finished and that each bidder has agreed to their plans for the new 10-year license period starting in 2023.

According to analysts and executives, the entry of Genting Malaysia poses a real threat to one of the operators in Macau regarding the new license. If Genting Malaysia is able to get one, it will probably be the biggest shakeup in the last two decades.

All of the six Chinese operators have been doing business in the Chinese special administrative region since 2002 and their current licenses are expiring at the end of 2022.

Even with China shaving off a few restrictions from their Zero Covid Policy the casino revenues have a long way to go to fully recover from the pandemic-induced lockdown.

Recently, the MGM Cotai casino in Macau went under lockdown with the guests trapped inside after a person working there was tested positive for Covid-19. Despite that, Chinese casinos have seen a rise in revenues for two consecutive months now.

Recently, the Chinese government has lowered the number of isolation days for foreign tourists and has allowed the tourist pass to be acquired online. Casino operators are hopeful that this will further increase the revenue but analysts suggest that it is unlikely that companies will see recovery from Covid revenue losses soon.