Inside Asian Gaming

the concessions of SJM and MGM until 2022, as allowed under Macau Gaming Law. Not only would this bring SJM and MGM in line with the rest, it would also buy authorities another two years in which to determine the re-tendering process. If so, then the more pertinent question isn’t so much the timing but what the re-tendering process will look like when it finally does get underway. It’s worth noting that a simple license renewal for the current operators is out of the question, as there is no stipulation under Macau Gaming Law allowing for such a decision. A public tender is therefore the obvious scenario, to be kicked off by the release of a tender program outlining minimum requirements of qualification, information the bidders are expected to disclose, mandatory elements of the proposals to be submitted, selection criteria and the criteria to quantify them. The public tender itself would then be conducted by a special committee appointed by theMacau Chief Executive. However, Coelho explains that the Chief Executive “is not required to follow the current rules as determined by the public tender regulation” and “may issue (and will likely do so) a new public tender regulation. “Although I believe that most of the criteria under the previous tender program will transition into a new tender, it is highly likely that the government will want to introduce new criteria and change the relevance given to some of the existing criteria (in particular the obligations of the awardees of a concession under the future concession contracts),” he adds. The Innovation Group’s Michael Zhu says a “true re- tendering” seems to be a logical direction, requiring all six operators to demonstrate what they have contributed to Macau’s prosperity both financially and socially and how they can continue to do so. “I believe more focus and attention will be given to ‘diversification’ implied in a few aspects,” Zhu says, including a greater focus on non-gaming amenities, a greater shift towards a sustainable mass market model and development of a more international rather than Chinese-centric customer base. According to Alvares, a genuine re-tendering stands out as the fairest system for all bidding parties allowing both the current “Big 6” and any new contenders to state their case on an equal footing. However, he suggests that “very significant weight should be given to an application from a concessionaire that has been operating in the market and has been doing it well. The reason pertains to public interest in that we do not want to rock the boat. I think the logic is ‘don’t change horses in midstream’. JAN 2019 INSIDE ASIAN GAMING 19