Casino licenses in Macau could be delayed
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In Macau, the six casino operators have to wait even longer for a license extension. Due to the corona pandemic, the main attention of the Chinese special administration zone is not on the extension of the licenses. Macaus Prime Minister Ho Iat Seng recently commented on the topic that there is currently no priority and there were no plans for new discussions. It is currently not clear whether the licenses of the casino operators, which are still valid by the middle of 2023, will be extended. Since the Corona pandemic is currently overshadowing everything, the licensing process can take longer than until 2023.
Rehabilitation of the economy comes first
Corona pandemic and the economic consequences by the Lockdown and the In the meantime closure of the casinos Macau harmed the gaming paradise. In addition, there were the lack of sales from tourists. The Corona restrictions have now been relaxed and the game offer in the casinos under strict hygiene and security measures Reduced again. Nevertheless, the loss of sales in the gambling industry are devastating. It is all the more important for the operators to ensure planning security for the next few years, which is why they urge the granting of the license extension.
The head of government of the special administrative zone Macau, Ho Iat Seng, can understand the interest of the casino operators, but currently sees the Rehabilitation of the economy Macaus first. Seng published this in conversation with several journalists before he left Beijing. The license procedures for the casinos of the great American gambling companies expire in the middle of 2023, but from the company’s perspective should definitely be extended. Therefore, the journalists suspected that visiting Beijing also served for discussion about this topic.
However, Seng immediately wasted this theory and once again emphasized the revival of the economy as a central element. The focus is now also on the cooperation in the prevention of epidemics. The gaming industry is of course a MacAUS’s important industryIn order to be able to stabilize the economy, however, comprehensive investigations of local authorities are necessary for the economic situation of the gambling industry.
That back and forth in the licensing process. The procedure for extending the 2023 licenses for American gambling giants who operate several casinos in Macau has been a permanent topic for many months. It was said in April this year from Lei Wai Nong, Macaus Economic and Finance Minister that the global corona pandemic had no time effect on the process of extension and thus the economic review of the actual situation that had the exact schedule of the licensing process But already raised questions at this point. Specialists from the US Bank JPmorgan had already analyzed that the licensing process would most likely be delayed beyond 2023. The experts came to this conclusion through a special feature in Macau law that it enables to extend licenses for gambling facilities such as casinos by a maximum of five years. As a result, the inevitable renewal process can even be delayed until 2027.
The casino operators get tensions and economic war between the USA and China
In addition to the Macaus government, of course, participating in the procedure are of course also involved The American gambling companies. The industry giants Las Vegas Sands, MGM Resorts and Wynn Resorts as well as Galaxy Entertainment, Melco Resorts & Entertainment and SJM Holdings are affected here as casino operators. In addition to the imponderables through the Corona pandemic and its unpredictable course, the US and China has been making matters worse in a kind of unpregept War.
This has been fueled again and again from both sides. US President Donald Trump has annoyed the Chinese government or provoked several times through news tweets on Twitter. Finally with a ban on the Chinese messenger app Wechat. Mutual punitive tariffs on export goods were always the order of the day. the Tensions between the two great powers Wave wavy. However, due to the political situation, the American casino operators fear a more difficult negotiating position in the extension of the happiness. However, the decision will probably only be made in a few years anyway.