Inside Asian Gaming

inside asian gaming August 2015 10 A ssuming Macau’s six current licensed operators will have their concessions automatically renewed ignores the history of gaming liberalization in the city and the current state of play in the world’s casino capital. Even though Secretary for Economy and Finance Lionel Leong listed “renewal of the gaming licenses” among key priorities for the government, Macau can do whatever it wants about casino concessions, which expire beginning in 2020, including reducing or increasing the number of operators. “I suspect even in Macau and the Central Government they don’t Feature In Focus As gaming concessions approach expiration, Macau and Beijing hold all the cards By Muhammad Cohen know [what they’ll do]. I think there are some preferences that are tempered by political or economic reality,” Spectrum Asia CEO Paul Bromberg, an expert in gaming regulation, says. “Seven years is an eternity in politics, a long time in the gaming industry.” Conditions have certainly changed since Macau opened the bidding for three concessions in late 2001 to end Stanley Ho’s 40 year casino monopoly. Back then, Macau had gaming revenue of $2 billion, roughly half of Atlantic City’s take, compared with last year’s $43.9 billion, nearly seven times the win in Las Vegas thanks to the investment of some $20 billon (and counting) in new casino facilities, including landmark integrated resorts. The city, in 2001 still recovering from the 1997 Asian economic crisis, achieved some of the world’s most stunning economic growth for a decade, creating virtual full employment and huge fiscal surpluses. RASING THE BAROMETER Despite all that progress, concession expiration approaches in an atmosphere that’s far less forgiving than it was 11 years ago when Macau celebrated the opening of its first non-monopoly casino, Sands Macao. Local authorities feel increased pressures from Beijing, frustrated by what is sees as Macau’s failure to implement what it believes are mutually agreed upon policies for greater oversight of the gaming industry and broadening Macau’s tourist appeal. It’s End of the Line?