According to a report from TDM Portuguese Radio, the Macau SAR Government has reportedly asked the seven companies competing for a new 10-year gaming license starting in 2023 to increase their proposed levels of investment.
This development has occurred this week as the bidders finished their negotiations with the government and submitted their final proposals. The preliminary results will also be released soon, potentially even this week.
Over the course of the 10-year concession period, the six companies that will ultimately win a new gaming concession agreed to invest a total of MOP$100 billion (US$12.5 billion), with Galaxy Entertainment Group and Sands China each investing more than MOP$20 billion (US$2.5 billion) and the other four investing around MOP$15 billion (US$1.88 billion).
TDM further claims that the government proposed an increase in the investment amount during the final meeting on Tuesday. Galaxy Entertainment Group and Sands China could possibly invest more than MOP$50 billion. The other four concessionaires would also invest more than their pre-agreed amounts.
The non-gaming investments by companies will also include building an art museum, developing an annual convention program, launching major concerts and providing international-quality entertainment and sea tours.
Provisional award will be given to the six companies that best support the development of the Macau SAR. However, Macau Chief Executive, Ho Iat-seng will ultimately decide which company will receive a concession.
The companies who receive the concession are required to submit information to the Gaming Inspection and Coordination Bureau under Macau’s new gaming law regarding the MOP$5 billion ($625 million) minimum capital requirement.
The new concessions will come into force on January 1, 2023. As a result, the government is expected to sign the concession agreement with the chosen company by December 20. Each awarded company will have five days to submit its opinions before the government drafts the final award contract.