Non-gaming investments by gambling concessionaires in Macau are expected to face tougher scrutiny. That’s the case based on a new report that suggests the current government would be looking into the actual investments of concessionaires, which vowed to dedicate funds to non-gaming amenities as a part of their 10-year contracts awarded a couple of years ago.
Non-gaming Investment by Macau Concessionaires Draws Scrutiny
In 2023, six casino operators secured 10-year concessions. At the time, each operator promised to invest in non-gaming amenities. Ultimately, those investments are expected to help Macau become less reliant on casino gambling and attract even more tourists with a range of entertainment options and other amenities.
Cumulatively, all concessionaires agreed to dedicate MOP108.7 billion ($13.6 billion) to investment in non-gaming features in the next 10 years. Each concessionaire vowed to invest a different sum with notable mentions being Sands, which pledged to invest MOP30.24 billion ($3.8 billion) and Galaxy Entertainment, which vowed to invest MOP28.35 billion ($3.5 billion) into non-gaming offerings. It’s worth noting that Wynn also pledged to invest a whopping MOP16.70 billion ($2.08 billion) into non-gaming.
Now, as announced by GGR Asia, the government in Macau will continue monitoring the non-gaming investment of the concessionaires, focusing on particular accomplishments and future plans for each year. Tai Kin Ip, the secretary of economy and finance, announced during a recent meeting of Macau’s Legislative Assembly that the government will look into the compliance of concessionaires with their contracts.
Concessionaires to File Regular Reports, Ensuring Compliance with Negotiated Contracts
The negotiated contracts with each concessionaire require reports containing detailed analysis and information regarding the progress of their non-gaming investment plans. However, during the recent meeting, some lawmakers voiced their concerns about the progress each concessionaire has made toward non-gaming investment.
The secretary of economy and finance responded that the government intends to further scrutinize this aspect of the concessionaires’ contracts, vowing to implement extensive monitoring. The new requirements demand each casino operator to submit a plan with a set execution schedule for its annual non-gaming investment. Those important documents would be submitted three months ahead of the start of each new year.
On the other hand, each casino operator would be required to file a detailed report describing the progress it has made on its non-gaming pledges during the previous year. Those reports would be submitted by March 31 each year.
The government in Macau would also have the power to request further reports from each concessionaire, ensuring they comply with their spending commitment. There is currently no public data regarding specific commitments or conditions by each operator.
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