Inside Asian Gaming

IAG FEB 2022年2月 亞博匯 34 COVER STORY comes up for review), I would certainly counsel the government to do so, and for several reasons. “One, it allows for a longer period of time for what will inevitably be a slower payback on these new investments, and two, the operators are best placed to respond to competitive pressure, not the government. “I think it alsobrings certainty to the market, particularly to the people of Macau who are strongly reliant on the [gaming] industry for employment and future opportunities. Tourism operators look to the gaming industry to be a leader rather than a follower in developing new offerings for that tourist market. “The final point to make is that if you only extend for a short period you end up slicing and dicing what remains to the point where there is no return to government. What is very clear is that operators will pay a premium for a longer term, but since the shorter term intensifies the risk, I don’t see them paying a huge premium for that opportunity.” This last point has been further complicated by events surrounding Macau’s junket industry. For context, the regulation of junkets – which 20 years ago contributed more than 70% of all industry GGR – was seen as an unavoidable compromise at the time. The subsequent Law 6/2002 allowed the industry to continue tapping this vital revenue source while ensuring junkets met a minimum