Inside Asian Gaming

JAN 2019 INSIDE ASIAN GAMING 21 to implement” and create a highly negative investment environment. But Bernstein also considers the issuance of a seventh or eighth gaming license as an unlikely option, pointing to problems created by “too many competing interests”, required changes to Macau’s gaming law in order to make it a reality and pressure to reduce current tax levels due to increased competition as working against this additional operator concept. Ironically, among those to have taken the opposing view by claiming the addition of a seventh concessionaire is a strong possibility is at least one current Macau legislator, Professor Davis Fong, who told IAG in 2017 that “from a society perspective we will welcome everybody who can help Macau achieve the World Centre of Tourism and Leisure.” “It would need more than just a proposal,” Prof. Fong added at the time, “but whether they are visible, whether they have the potential background or historical records to prove to society that okay, they are not [one of] the six, however they can help achieve the next level. “I think society will welcome everybody who can help Macau achieve this new position.” It’s one of many questions that, until now, remain unanswered, but one thing is for sure: however it plays out, Macau’s gaming license tendering is set to shape the future of Asia’s gaming industry. Kong, local concessionaires than American ones,” he observes. “At least, they may want to change the current 3-3 balance.” The legal view is somewhat different, with MdME’s Carlos Eduardo Coelho stating, “I do not expect this to happen given the autonomy and independence of Macau legislative and executive power.” Likewise, Alvares explains that while the SARmay consult with Beijing, final decisions will ultimately stay local. “Macau, as a Special Administrative Region of the People’s Republic of China, enjoys a high degree of autonomy in running its own affairs,” he says. “Based on the provisions relating to the re-tender process, any decisions taken in that regard are within such purview of autonomy.” Bernstein outlines four potential options for how Macau’s gaming industry might look following completion of the re-tendering process. Most likely, the brokerage says, is maintaining the status quo, with the current six all having their concessions renewed but with higher fees or taxes. Considerably less likely, according to Bernstein analysts, is all of the above but with no increase to fees or taxes – a scenario it only sees possible should Macau’s ongoing economic recovery suddenly falter. Rated as most unlikely would be failure to issue new licenses to any of the Big 6, which would be “difficult It remains to be seen how much say Beijing will have in Macau’s re-tendering process