If it were up to Wang Changbin, the licenses provided to casino operators in Macau would not be valid for 20 years. Wang, a reputable gaming scholar and the director of the Centre for Gaming and Tourism Studies at the Macao Polytechnic Institute, gave remarks recently on the subject of Macau’s concession renewal process, explaining that the licenses should only be valid for a maximum of ten years, with other restrictions put in place, as well. Should Macau decide to go that route, it’s doubtful that any operator would give up on the gambling city, but there would certainly be considerable backlash.
Some casino concessions were set to expire this year, with others ending in 2022. The Macau government approved a measure to offer those expiring this year to be given two-year extensions, which allowed all casino operators to see their concessions end simultaneously. The city still hasn’t come forward publicly with details on how it will structure the renewal process in 2022, and Wang’s comments might possibly play a role in any new policies created.
Casino concessions won’t technically be eligible for renewal in 2022, at least not in the strictest definition of the word. Casino operators are limited to how many renewals are allowed, and the upcoming license-issuing process would, in theory, be based on a complete review of an operator’s activity as if they were entering Macau for the first time, and a new public tender. However, in practice, the odds of an existing operator losing its license are about as long as those for the Cleveland Browns to win the next Super Bowl.
Still, this doesn’t mean that Macau won’t change how the concessions are issued, essentially tying the casino operators’ hands. If Wang’s input, described in his article, “The Casino Gaming Concession System In Macao: Past, Present And Future,” is included in policy changes, licenses would only be good for ten years, and would be subject to review and renewal after just five. This, he asserts, would allow the government to be able to react better to changing conditions in the market or in operations.
Wang explains, “Nowadays, gaming is changing rapidly in Asia, and Macao is facing more and more competition from its neighboring countries. But with the current limitation of the concession system, the Macao government cannot respond to the changes quickly. To solve the problem, the Macao government may consider shortening the concession period to make timely decisions. For example, a ten-year concession with every five years’ review and license renewal could be considered. A ten-year concession should generally be long enough for an operator to develop a large-scale project while a review and renewal every five years extends the government flexibility to make some changes if necessary.”
With the fallout from the coronavirus resulting in major losses in revenue, it’s highly probable that the gambling segment in Macau is going to go through some major changes over the next several years. This will partially be driven by the city’s desire to diversify and offer a wider range of tourism options, but will also include a shift in how casinos operate. While it’s not the right time to consider kicking out any casino company, it’s highly likely that the operators are going to be held to an entirely different, and stricter, set of standards going forward.
