Inside Asian Gaming

MAY 2018 INSIDE ASIAN GAMING 23 “With what happened to Wynn, it would not surprise me if Wynn Macau is replaced by a player (or two in the case of a seventh concession) with solid China background, while the other five will remain as-is.” – Michael Zhu all should be evaluated according to the criteria the government will use to give a numbered grade to each one. “An area that I think shouldbe a factor – and that has been integrated into the competition for a casino license in Singapore accounting for almost 40% of the award – is tourism development issues. These were not included in great detail in the original contest in Macau. “This factor may make reference to the development and diversification of non-gaming, to go beyond gaming. It is an important criterion and should be well defined.” The opening of a public tender in itself presents a myriad of intriguing possibilities, not least of which is the introduction of a seventh concessionaire, or even more. Such a suggestion seemed unthinkable only a matter of years ago whenMacau’s gaming industry found itself in the midst of the downturn, but has quickly gained momentum since, with many believing a seventh concessionaire is now more likely than not. “A seventh license feels more likely than ever, although by no means is it a lock,” offers Govertsen. “We believe there is a desire for a majority of gaming revenue to be captured by Chinese companies and with this in mind a seventh license would make a lot of sense. It could also be used as a means to tidy up at least some of the service provider casino operators.” Likewise, The Innovation Group’s SVP of International Planning COVER STORY and Analysis, Michael Zhu, describes the issuance of a seventh Macau gaming license as “very likely”, particularly if a suitable Chinese company presents its case. “The gaming market in Macau has been so successful and highly coveted in many aspects,” he says. Wynn Macau’s risk profile has risen significantly since the saga that led to Steve Wynn stepping down as Chairman and CEO.