Reações/críticas (ao primeiro documento e ao processo, também ao segundo documento)
Jorge Godinho, académico da Universidade de Macau, participa hoje num painel sobre o panorama do jogo em Macau na G2E Asia, que este ano se realiza em Singapura. Para o docente, a transformação do mercado, onde o jogo VIP deixa de ter o peso principal a favor do jogo de massas, não surpreende, pois o boom das apostas VIP foi uma surpresa
Macau’s next generation of casino concessionaires will in likelihood find it hard to meet the Macau government’s expectations on bringing in more foreign tourists, whatever plans licence bidders present to the authorities in time for the September 14 tender submission deadline, several industry commentators remarked to GGRAsia.
Nonetheless, under Macau’s updated regulatory framework for gaming, an incumbent Macau chief executive will have the discretion to reduce tax payable on casino gross gaming revenue (GGR) as an incentive for operators to bring in more customers from overseas. The details of how that would be implemented are yet to be made public.
Ben Lee, analista de jogo, acredita que as diversas alterações que o Governo tem introduzido na proposta de lei só aumentam as incertezas no sector, podendo mesmo afastar potenciais investidores quando forem realizados os concursos públicos para atribuir novas concessões
Far from Macau’s capex investment cycle being over, the shift to mass with its demand for more hotel rooms and the need to constantly refurbish means the concessionaires need to continually invest. But with only a guaranteed 10 years to recoup investments – and with likely three years of the 2020s lost to COVID – is this long enough to act as a real incentive for the concessionaires to make the investments Macau needs?
The historians amongst you will remember the two monopoly concession periods prior to the current concession period were 40 years apiece – so over the past century the three concession periods have averaged around 33 years in length. The reduction to 10 years is yet another factor making Macau less attractive to commercial gaming operators.
Incerteza geopolítica afeta perspetivas dos casinos norte-americanos em Macau
O analista Edward Moya considera que a incerteza sobre o posicionamento da China no conflito Rússia-Ucrânia vai afetar as perspetivas do jogo em
https://www.jornaldenegocios.pt/economia/detalhe/incerteza-geopolitica-afeta-perspetivas-dos-casinos-norte-americanos-em-macau
jan22
Much has changed in 20 years. Another commission could be temporarily formed this time around as well to judge the bids. This time, the reality of Macau’s leading position globally in terms of gaming revenues is well-established, along with the physical reality of The Cotai Strip, the integrated resort projects, and neighbouring Hengqin Island.The public tender, an extension of the Macau Government’s position outlined in the gaming bill, will also see the winning tender documents adjusted to align with these. It is important for all stakeholders to be on the same page – given the ‘not to miss’ window of opportunity of ‘Macau 2.0’, as Hengqin Island and Greater Bay Area visions become a reality. Glenn McCartney https://agbrief.com/intelligence/25/01/2022/macau-bidders-need-to-pay-close-attention-to-government-vision/
HENGQIN
The anticipated fresh public tender for Macau gaming rights, associated with the June expiry of the current six licences, could involve bidders “voluntarily” pledging “certain budgets for non-gaming projects in Macau and/or Hengqin,” and for “social responsibility” purposes, says a Wednesday note from brokerage JP Morgan Securities (Asia Pacific) Ltd. Were bidders for new Macau gaming licences to be asked to pledge support for Hengqin, “this would indirectly lower operators’ return on invested capital to some extent,” said JP Morgan analysts DS Kim, Amanda Cheng and Livy Lyu. https://www.ggrasia.com/new-macau-permits-maybe-tied-to-hengqin-invest-jp-morgan/
Fitch Ratings Inc says there “is no obvious evidence yet” that Macau casino operators that are majority controlled by United States-based firms “will be treated differently” from Chinese-controlled counterparts regarding an expected refreshment process over gaming rights in the city. “The operating subsidiaries [of the U.S.-based firms] are ultimately owned by Hong Kong-listed public entities, are large local employers, have invested tens of billions of U.S. dollars in capital and consistently promoted the government’s social goals,” the ratings agency said in a report issued on Monday.
https://www.ggrasia.com/no-evidence-u-s-ops-to-be-singled-out-by-macau-govt-fitch/
A continued “robust” approach to environmental, social, and governance (ESG) issues by Macau casino operators could help boost revenue, cut costs, and reduce risk of hazards such as litigation, says a report by Daiwa Capital Markets Hong Kong Ltd. The review by analysts Andrew Chung and Terry Ng approached the ESG topic on the basis that all six had been making improvements in that area, that would potentially work in their favour in future. “We believe strongly that a robust ESG profile is key to incremental revenue opportunities, sustainable cost savings and intangible-risk mitigation,” stated the Daiwa analysts in the paper issued on Thursday.
https://www.ggrasia.com/social-governance-aspects-make-macau-ops-money-daiwa/
DIGITAL YUAN
The average high roller lost over $27,000 on each visit to the tables in Macau, Bernstein analysts estimate. It has been a haunt of corrupt officials and businessmen too. In December, junket operator Suncity’s boss Alvin Chan was implicated in an investigation into illegal gaming. Suncity facilitated bets for wealthy VIPs, a market segment worth around $8 billion in gaming revenue the year before Covid-19 struck. Just one month earlier, central bank governor Yi Gang suggested China’s newly developed cryptocurrency could be useful for fighting crime and resolving complex cross-border payments problems, including money-laundering. Macau might have been on his mind. Migrating the gaming hub to digital payments would complement Beijing’s desire for greater oversight of cash flows and customers. Situated outside Chinese capital controls, Macau is also an ideal place to test the technology before rolling it out more widely on the mainland. Others are already considering the concept of cashless casinos using traceable funds. Australia’s Star Entertainment, for example, says it is exploring digital payments to assuage its watchdogs
How many concessionaires?
Concession length
The consultation document goes on to say “the current investment environment and other conditions are different from those of that time” and that “an excessively long and inflexible grant period may cause certain obstacles and may reduce the enthusiasm of concessionaires to optimize and improve their own services to attract new customers.” Hmm, not so sure about that. The document goes on to say, “Considering and balancing the stability of the job market, the time required for investors to operate and develop, the reasonable expectations of returns, as well as the SAR government’s ongoing review of the industry’s development needs, it is recommended to review the concession period.” [italics added] Although critical word here is “review,” the heavy implication is that the government thinks the new concessions should be shorter than the current 20 years. Finally, the document suggests that consideration ought to be given to keeping the optional extension period in the same 25% ratio to the grant period. Note the document presents the extension period as a fait accompli, not even raising the question of whether there should or should not be provision for an extension period https://www.asgam.com/index.php/2021/12/31/macau-gaming-law-report-part-4-concession-length/
Representative
Zeng Zhonglu, Professor at the Macau Polytechnic Centre for Gaming and Tourism Studies said having such a representative could place a burden on operators, despite their role being minimal. “If Macau introduces this measure, firstly, it will increase the government’s social cost. Sending a representative might not play a significant role, but it will increase the burden. A burden that will be carried by the operator. And it is not beneficial to the competition amongst the operators. And with a government representative, if their opinion varies with the gaming operators, then who gets the final say? The responsibility lies within the company, but they have to listen to the representative’s opinion. This is a conflict of interest.” Zeng argued that the government should not interfere with business practices, and stressed that as long as good supervision laws are set and strictly enforced, then they can assist the development of the gaming market.
https://agbrief.com/news/macau/27/12/2021/local-experts-voice-concern-over-aspects-of-gaming-law-consultation-report/?utm_source=Asia+Gaming+Brief&utm_campaign=18157f7123-&utm_medium=email&utm_term=0_51950b5d21-18157f7123-69255637&ct=t()&goal=0_51950b5d21-18157f7123-69255637
Timeframe
However, according to a report from TDM, Macau Responsible Gaming Association’s president, Billy Song said he believes the government should consider granting the licenses in stages and renew them according to the performance of the gaming operators. “They can grant maybe ten years, five years, or eight years (at a time). And there can be some revision within the 20-year period. The government can consider whether the gaming enterprises have done enough to fit the government’s criteria during the grant period. If it fits, then they can extend the period to the enterprises. However, the total period cannot exceed 20 years. Whether this period limit needs to be revised remains to be analysed,” he said. During the consultation period, the need for government representation within the operators had also raised concerns, although authorities have now said they will not intervene in casino operations or affect the independence of the operator.
https://agbrief.com/news/macau/27/12/2021/local-experts-voice-concern-over-aspects-of-gaming-law-consultation-report/?utm_source=Asia+Gaming+Brief&utm_campaign=18157f7123-&utm_medium=email&utm_term=0_51950b5d21-18157f7123-69255637&ct=t()&goal=0_51950b5d21-18157f7123-69255637
DIVIDENDOS:
This is the answer everybody has been waiting on – if it is to be believed. It clarifies that the policy intention is “not designed to prevent reasonable profit distributions from normal business practices.” They just want the concessionaires to be solvent, to have the cash on hand to do what the government wants them to do. So, if you believe this, and you believe that Macau gaming concessionaires have historically had “sufficient financial resources to fulfill their obligations stipulated in the law and under the concession contract,” then you must believe that the proposal to require government authorization for dividends will not amount to any practical change for the Macau operators. This is the first time the government has expressed this clarification and should go a long way to calming the market – if the market is astute enough to read between the lines and receive the message. Our next step on the road to clarity is to wait until the draft amendment is made public, so that we can see the precise language drafted to give effect to the policy intention. And if my suspicion is correct, we might be seeing that as early as next month. https://www.asgam.com/index.php/2021/12/26/macau-gaming-law-report-part-2-government-authorization-of-dividends/
O advogado Pedro Cortés acredita que o Governo poderá abandonar a ideia de criar meios legais de controlo da distribuição de dividendos pelos accionistas das concessionárias de jogo. Ao invés disso, o Executivo “poderá encontrar outras medidas para atingir o mesmo objectivo”. https://www.plataformamedia.com/2021/12/29/governo-pode-criar-alternativas-sobre-distribuicao-de-lucros/
The Macau government is on a mission – and the mission deadline is 26 June 2022. This has been abundantly clear to me ever since the Macau Gaming Inspection and Coordination Bureau (DICJ) rushed through eight public consultation sessions on four consecutive days – 22 to 25 October – due to a COVID-disrupted September. Those four days included a Saturday and, shock, horror, a Sunday! Whoever heard of Macau government employees working on a sacred-family-day Sunday! Since then, I have been telling anyone who would listen that I honestly believed the Macau government was highly motivated to get the casino gaming concession re-licensing process completed, on schedule, before the six concessionaires’ licenses expire on 26 June 2022. The 45-day public consultation was another hint, as most public consultation periods in Macau are 60 days. (...) Arguably, the most important thing to learn from the release of the final report yesterday is not even contained in the report, but the mere fact it issued yesterday, when by law the government had until March 2022 to release it. That speaks volumes.
https://www.asgam.com/index.php/2021/12/24/a-christmas-present-from-the-macau-government-the-gaming-law-public-consultation-final-report/
Num documento enviado ao Secretário para a Economia e Finanças, defendeu que, no que respeita ao número de concessões para a exploração de casinos, “a preocupação fundamental deverá ser sempre a defesa dos postos de trabalho e a salvaguarda dos seus legítimos direitos e interesses”. Na sua visão, a lei deve prever uma actualização anual dos salários de acordo com os lucros das concessionárias e tendo sempre com referências “as rendas e os preços dos bens essenciais de consumo e a carestia de vida”.
Além de se mostrar contra as subconcessões, insiste que “será necessário salvaguardar os direitos dos trabalhadores e os que ficarem desempregados devem ser absorvidos e ter postos de trabalho nas concessionárias a que forem atribuídas concessões no novo concurso”.
A ATFPM apela à criação de condições “mais favoráveis” à contratação de trabalhadores locais, evitando-se a “dependência excessiva” dos não-residentes. “Esta situação resolve-se com a aprovação urgente de uma lei sindical e negociação colectiva e com a alteração à lei laboral”, acrescenta.
Por outro lado, sugere que “se diminua a dependência quase exclusiva de turistas jogadores do Interior do Continente”.
Quanto ao prazo de concessão, entende que “não deve ser muito alargado” – no máximo de cinco anos, podendo em situações excepcionais ser prolongado por mais dois anos e meio. Além disso, deve estipular-se um número fixo de casinos para garantir a sustentabilidade do sector, bem como reforçados os mecanismos de verificação das concessionárias e dos promotores de jogo e a fiscalização das receitas.
Entre as sugestões surgem ainda a repartição anual de 3% dos lucros aos residentes, a construção de habitação para os trabalhadores do sector e a compra de autocarros eléctricos para transporte dos trabalhadores. Defende também que as operadoras devem suportar todas as despesas de manutenção do Metro, bem como do novo hospital das Ilhas. https://jtm.com.mo/local/atfpm-fez-sugestoes-sobre-lei-jogo/
BALANÇO DA CONSULTA COM GRAFICOShttps://www.asgam.com/index.php/2021/12/24/a-christmas-present-from-the-macau-government-the-gaming-law-public-consultation-final-report/
Casino operators in Macau have reason to fear new license scheme.
Macau’s Secretary for Economy and Finance, Lei Wai Nong (pictured), gave on Friday during a question-and-answer session with the city’s legislators, little fresh information regarding how Macau is preparing for June next year, when the rights of the six current casino operators are due to expire. His reticence also extended to the topic of the city’s proposed revision of its gaming law, previously described by the government as a necessary preparatory step in the process. Mr Lei was at the city’s Legislative Assembly, for discussion of the government’s Policy Address for the Fiscal Year 2022. https://www.ggrasia.com/macau-economy-secretary-says-little-new-on-gaming-expiries/ SILENCIOThe lack of information provided on the future of the gaming sector by Chief Executive Ho Iat Seng during his 2022 policy address was “striking” considering the short timeline for the expiration of gaming concessions, security and consulting company Steve Vickers & Associates Ltd (SVA) stated in a recent dispatch. (...)‘The Chief Executive simply commented that a public tender process will take place after the expiry of current concessions. He did not provide further detail on timing, despite earlier commitments to complete a tender process by the fourth quarter of 2021 – a schedule that now seems very optimistic,’ the company noted in the dispatch ‘Of course, the authorities could still fudge the issue, and simply extend the concessions (as is possible under the existing rules, for a maximum of five years). In the interim, though, the tendering process remains opaque, leaving the casino sector in a state of limbo.’ According to Vickers, Ho’s “silence” added to the uncertainty affecting the casino industry, considering gaming accounts for 80 per cent of Macau’s GDP and the pending end of the gaming concessions. https://www.macaubusiness.com/ce-silence-on-future-of-gaming-sector-stricking-security-risk-consultant/
There has also been a lot of anguish over the length of the renewals. The original concessions were 20 years. But the political and economic realities requiring renewals now will continue to exist in ten years. The real danger comes from Beijing, which has decided to reassert control over Macau. The People’s Republic of China was never happy with the pro-democracy politics of Hong Kong. It seized the opening it was given by COVID and Donald Trump’s weakness and cracked down, eliminating all demonstrations and free press. Having gotten control over Hong Kong, Beijing turned to Macau. The Chinese government has always wanted a bigger share of Macau casinos’ profits to stay in China. So, all American casino companies will have to sell more than 10% to local Macanese partners. And the government will decide when companies can declare dividends. Top officials are concerned with the enormous amounts of cash fleeing the Mainland, often through smuggling. A new law puts more restrictions on junket operators, especially when cash is involved. https://www.gamblingandthelaw.com/china-has-plans-for-macau/
Macau’s “go-go years” appear to be over, with signs both the central Chinese government and local Macau authorities want tighter control and investors should manage their expectations accordingly, a report from a senior risk consultant warns. In a stark report on Macau, Steve Vickers & Associates said that the rapid expansion of the casino industry had relied on a degree of “acquiescence regarding capital outflows and widespread, if concealed, organized crime involvement with the junkets.” “Now the central Chinese and the local Macau governments have restricted that acquiescence and display an appetite for tighter controls,” it said. https://agbrief.com/news/macau/25/11/2021/macaus-go-go-years-over-investors-need-to-manage-expectations-sva/ SILENCIOThe lack of information provided on the future of the gaming sector by Chief Executive Ho Iat Seng during his 2022 policy address was “striking” considering the short timeline for the expiration of gaming concessions, security and consulting company Steve Vickers & Associates Ltd (SVA) stated in a recent dispatch. (...)‘The Chief Executive simply commented that a public tender process will take place after the expiry of current concessions. He did not provide further detail on timing, despite earlier commitments to complete a tender process by the fourth quarter of 2021 – a schedule that now seems very optimistic,’ the company noted in the dispatch ‘Of course, the authorities could still fudge the issue, and simply extend the concessions (as is possible under the existing rules, for a maximum of five years). In the interim, though, the tendering process remains opaque, leaving the casino sector in a state of limbo.’ According to Vickers, Ho’s “silence” added to the uncertainty affecting the casino industry, considering gaming accounts for 80 per cent of Macau’s GDP and the pending end of the gaming concessions. https://www.macaubusiness.com/ce-silence-on-future-of-gaming-sector-stricking-security-risk-consultant/
No documento que está em consulta pública sobre a revisão da lei do jogo, o Governo propõe a definição de critérios que regulem a distribuição de dividendos das operadoras aos accionistas. Analistas alertam para instabilidade económica que pode resultar da intervenção do Executivo e do impacto no funcionamento na economia de mercado. Entretanto, as operadoras registaram ontem acentuadas quebras na bolsa https://hojemacau.com.mo/2021/09/16/jogo-analistas-alertam-para-controlo-do-governo-sobre-distribuicao-de-dividendos/
In conclusion, the Macau government should consider an amendment to the Gaming Law to provide for the possibility to directly award the casino gaming concessions to the current casino operators. At present, the conditions for them to offer “the most advantageous conditions for the Region” are not met, particularly in a scenario where the estimated gaming gross revenue for 2021 is half of what was estimated by the Macau government in the 2020 budget. lobo Vilela https://agbrief.com/news/macau/09/11/2021/direct-award-better-option-than-public-tender-for-casino-gaming-license-renewals/?utm_source=Asia+Gaming+Brief&utm_campaign=c3b5e764fe-&utm_medium=email&utm_term=0_51950b5d21-c3b5e764fe-69255637&ct=t()&goal=0_51950b5d21-c3b5e764fe-69255637 O advogado António Lobo Vilela, afirma que as futuras concessões dos casinos devem ser atribuídas de forma directa e sem concurso. Para o especialista na lei do jogo de Macau, a atribuição directa das concessões de jogo seria “de interesse público”. https://pontofinal-macau.com/2021/11/10/especialista-defende-atribuicao-directa-das-concessoes-de-jogo/
The Macau Gaming Equipment Manufacturers Association (MGEMA) – an entity representing the interests of gaming and technology suppliers – has called for proposed revisions to Macau’s gaming law to include the granting of legal status to satellite casinos.
The future of Macau’s satellites – casinos run by third party operators under the license of a Macau concessionaire – has long been a point of contention after they were essentially “grandfathered” in when Law 16/2001 was introduced some 20 years ago.
However, their status was a notable omission from proposed amendments to the gaming law outlined by the government in September and their future was not raised during any of four public consultation sessions hosted by the Gaming Inspection and Coordination Bureau (DICJ) last week. https://www.asgam.com/index.php/2021/11/04/mgema-calls-for-macaus-satellite-casinos-to-be-licensed-by-law/
The regulatory risk due to amendments in Macau’s gaming law may be lower than stock market investors are currently pricing in, Morgan Stanley wrote in a note. The firm said the Gaming Inspection and Coordination Bureau (DICJ) provided some clarity to the proposed changes at the end of the public consultation process, in particular on three areas of greatest concern. As a result, Morgan Stanley said it remains “constructive” on the sector. https://agbrief.com/news/macau/02/11/2021/macau-regulatory-risk-may-be-lower-than-market-currently-pricing-ms/?utm_source=Asia%20Gaming%20Brief&utm_campaign=d8c45bf3cc-&utm_medium=email&utm_term=0_51950b5d21-d8c45bf3cc-69255637&ct=t%28%29&goal=0_51950b5d21-d8c45bf3cc-69255637
AAssociação Novo Macau (ANM) entregou, na sexta-feira, sugestões à Direcção de Inspecção e Coordenação de Jogos (DICJ) a propósito da revisão da lei do jogo.
A associação defende que a presença de delegados do Governo no conselho de administração de concessionárias de jogo, uma das propostas avançadas pelo Executivo, pode originar corrupção e trazer impacto negativo na confiança dos investidores. Além disso, as propostas entregues à DICJ fazem referência à necessidade de acabar com as subconcessões de jogo, bem como da importância de mais responsabilidade na garantia dos direitos laborais por parte das operadoras, incluindo os apoios às pequenas e médias empresas e projectos de protecção ambiental. https://hojemacau.com.mo/2021/11/01/jogo-novo-macau-alerta-para-delegados-do-governo-nos-casinos/
Além disso, Tash salientou que o documento de consulta não aborda especificamente a forma como os casinos satélite – as propriedades operadas e promovidas por terceiros sob uma concessão de jogo das seis operadoras na cidade – serão tratadas no futuro. De acordo com o DICJ, existem cerca de 20 casinos satélite entre os 40 casinos que a cidade alberga.
“Temos demasiados… e esse número deve ser reduzido significativamente”, disse. “Não estou a dizer que todos os casinos satélites devem sair. Estou a falar dos mais pequenos que são puramente casinos – exatamente o oposto do que Macau quer”.
Ao abordar os casinos satélite como a “questão complexa e histórica”, Rui Pinto Proença observou que alguns deles deram contribuições para a comunidade. “O documento de consulta enaltece, mais de uma vez, o princípio ‘qualidade sobre quantidade’ – temos estado a lê-lo como se se referisse ao número de concessionárias, mas pode também estar a referir-se ao número de casinos na cidade”, concluiu.
https://www.plataformamedia.com/2021/10/29/futuro-de-macau-em-jogo/
Macau’s public consultation process has ended with little clarification on the intended changes to gaming laws, although the industry is likely to hear before the end of the year to give time for the renewal process ahead of the June deadline, a leading industry consultant said. Ben Lee, managing partner of iGamiX Management & Consulting, said he doesn’t believe the government will extend the current concessions beyond the June expiry to give more time for the tendering process. It’s more likely to begin in January, he said. The Macau government published its draft consultation paper on Sept. 15, which was the first necessary step to start the concession renewal process. The deadline for comment ends on Oct. 29th and the government has held a series of public consultation sessions, with a separate one for the six operators.https://agbrief.com/intelligence/deep-dive/28/10/2021/macau-concession-tender-not-likely-delayed-law-clarity-seen-by-year-end/
Any revisions made to the gaming law ahead of license re-tendering should aim to position Macau as Asia’s “entertainment city” and clearly define its role in the region, according to the University of Macau’s Professor Glenn McCartney. McCartney made the comments during a presentation to guests of the French Macau Chamber of Commerce this week, titled, “Macau’s Casino Concessions: Gambling on Uncertainty?” The presentation analyzed key factors shaping changes to the gaming law while highlighting how the future of Macau will heavily depend upon the final result. https://www.asgam.com/index.php/2021/10/28/professor-says-revised-gaming-law-must-recognize-macaus-core-attribute-as-an-entertainment-city/
O especialista em ‘resorts’ integrados e gestão turística considera que a nova lei do jogo “não é um documento claro”. As perdas dos casinos do território na bolsa, depois do anúncio das alterações legislativas na operação de casinos em Macau, foram superiores a 18 mil milhões. Isso também deixou McCartney apreensivo. “Foi racional?”, questionou. “Não”, respondeu. Outra coisa que também deixou surpreso o académico foi o facto de o novo articulado não fazer menção, numa linha sequer, à pandemia de Covid-19. “Acho surpreendente que o documento não tenha referido nada, confesso”, admitindo que, no que resta, “não houve qualquer surpresa”. O académico, natural da Irlanda do Norte, também relembrou outros problemas que afectaram o sector do jogo e do turismo nos últimos anos, como a lei tabágica em 2016. “Acabou por trazer implicações no que aos turistas da China continental diz respeito”, notou, lembrando que tudo o que mexa com turismo terá de ser cuidadosamente ponderado, uma vez que o PIB do território está dependente 50,3% desse sector. https://pontofinal-macau.com/2021/10/28/macau-precisa-de-mais-planeamento-a-longo-prazo/ https://pontofinal-macau.com/2021/10/28/macau-precisa-de-mais-planeamento-a-longo-prazo/
Currently, the city’s casino licenses have a validity of 20+5 years.
Fong’s justification for his proposal is that the city’s economic development, particularly the casino and resort operations, would better be able to meet the 2035 economic targets of both the country and the Guangdong-Macao Intensive Cooperation Zone in Hengqin. https://macaudailytimes.com.mo/gaming-scholar-calls-for-105-mode-for-casino-licenses.html
JP Morgan analysts say they “wouldn’t be surprised” to see the Macao SAR Government extend the current license term of Macau’s casino concessionaires by between 6 and 12 months due to the tight schedule for completing a public re-tender process. The commentary from analysts DS Kim, Amanda Cheng and Livy Lyu follows completion of the fourth and final public consultation session on proposed revisions to Macau’s gaming law on Monday, with the 45-day period for public submissions set to close this Friday 29 October. While the government has recently picked up the pace in preparation for the expiration of all six concessions on 26 June 2022, Kim, Cheng and Lyu believe the timeline for issuing new concessions by then is looking increasingly tight. “The next milestone will be the summary report on public consultation, which the government is required to publish before mid-March (180 days from public consultation),” they wrote in a Tuesday note. https://www.asgam.com/index.php/2021/10/27/analysts-tipping-6-to-12-month-concession-extension-following-completion-of-macau-gaming-law-consultation/
The argument that China is seeking to reduce the role of U.S. operators in Macau is “unfounded” and “without evidence,” Bernstein Research said in a note presenting Sands China as its top investment idea for 4Q21. It said these concerns have worsened investor sentiment, especially in light of the current concession review process. “China is not looking to deprive U.S. operators in Macau of the business opportunity or to treat them harshly compared to the Hong Kong operators,” it said. “Over the past three years, China has made great strides in improving the regulatory environment with respect to foreign business and investment.” https://agbrief.com/news/macau/25/10/2021/concern-china-wants-to-reduce-u-s-operator-role-in-macau-unfounded-bernstein/?utm_source=Asia+Gaming+Brief&utm_campaign=6a62ccbb0c-&utm_medium=email&utm_term=0_51950b5d21-6a62ccbb0c-69255637&ct=t()&goal=0_51950b5d21-6a62ccbb0c-69255637
out21
Oex-deputado nomeado Davis Fong entende que a RAEM deve ter em conta as tensões diplomáticas entre Washington e Pequim na avaliação das licenças de jogo. O académico recordou que, nos últimos anos, a China e os Estados Unidos têm uma relação diplomática tensa e que, actualmente, as operadoras de jogo norte-americana detém duas licenças de jogo [Sands China e Wynn]. Nesse contexto, defende, que Macau deve respeitar e seguir as direcções nacionais. O responsável falou no âmbito de um fórum sobre a revisão da lei do jogo organizado pelo Centro de Política da Sabedoria Colectiva. O académico defendeu ainda que a revisão da lei do jogo, actualmente em consulta pública, não deve implementar mais do que seis concessões de jogo. O actual director do Instituto de Estudos sobre a Indústria do Jogo da Universidade de Macau explicou, em declarações ao jornal Ou Mun, que ao definir já a atribuição de uma a seis concessões, no máximo, o Governo pode revelar flexibilidade e reduzir medos e anseios da população sobre o futuro do sector. Para Davis Fong, se forem atribuídas mais de seis licenças de jogo isso não corresponde ao consenso da sociedade no que diz respeito à diversificação económica. Pelo contrário, se for reduzido o número de licenças, o aumento do desemprego no sector do jogo pode causar instabilidade social.
DAVID CHOW O corresponsável da empresa com investimentos na agricultura, banca, casino e hotelaria, atualmente a desenvolver um projeto turístico em Cabo Verde, assume assim que "o número de concessionários de jogos não deve ser suprimido porque o menor número de concessionários pode resultar em oligopólio ou monopólio". Em relação ao número de concessionárias, David Chow contesta a argumentação das autoridades de que "a qualidade é mais importante do que a quantidade". Na sua opinião, tal argumento referido no documento "é, de facto, questionável". Em relação a esta matéria, David Chow considerou que o período de concessão devia ser dividido em duas categorias, entre novos investidores e antigos investidores. "A participação de novos investidores deve ser encorajada e devem ser introduzidos novos mecanismos de concorrência", afirmou. https://www.rtp.pt/noticias/economia/agente-do-jogo-em-macau-contra-reducao-do-numero-de-concessionarias_n1358277
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Las Vegas Sands CEO Robert Goldstein and others in the company’s C-suite spent most of the company’s third quarter earnings call Wednesday laying out why they aren’t concerned by Chinese gaming regulators’ plan to increase scrutiny on Macau gaming operators. Instead, they repeatedly described regulators there as “very reasonable, very thoughtful, and very fair.” All of Macau’s casino operators are required to rebid for their licenses, as they expire in June 2022. When asked if he could even envision a worst-case scenario where Las Vegas Sands doesn’t get a license renewal, Goldstein quickly shot down that idea. “I do not. I see no chance of that whatsoever,” he said. “I think the government recognizes we’ve been a good licensee.” Part of that optimism stems from how Las Vegas Sands is a major employer in the region and invested $15 billion so far developing casino resorts. The company also has more hotel rooms in the region than any other operator. “We remain confident the process will work out,” Goldstein said. “We have two decades of history with this government, and it’s been a very good two decades.” https://skift.com/2021/10/20/las-vegas-sands-ceo-praises-china-with-macau-gaming-license-up-for-renewal/ + https://www.macaubusiness.com/sands-china-net-losses-expand-in-q3/
A proposed amendment to Macau’s gaming law that suggests appointing a designated government representative to each concessionaire could be welcomed by both parties, with the representative unlikely to be granted undue powers, according to Macau law firm MdME Lawyers. In the second of a series of papers examining some of the proposed amendments, which were made public by the Macao SAR Government last month, MdME’s Rui Pinto Proença and Rui Filipe Oliveira note that the implementation of a designated government representative is already part of Macau’s concession landscape with most public utilities including a representative who oversees the contract performance and activities of the company related to the concession. https://www.asgam.com/index.php/2021/10/11/proposed-appointment-of-government-representative-to-macaus-concessionaires-could-be-a-win-for-all-mdme/
A proposal by the Macau government to introduce limitations to the distribution of dividends by casino concessionaires to their shareholders has no parallel example within Macau’s legal framework, with the stated policy goals likely achievable via other mechanisms available under the legal system, according to a new paper from MdME Lawyers. In the first of a series of papers exploring the proposed gaming law amendments in more detail, MDME’s Rui Pinto Proença and Rui Filipe Oliveira note that the proposed dividend limitation is “difficult to harmonize with Macau’s legal framework”, with no such requirement having ever been introduced even as they relate to the concession contracts of essential public services like water and electricity supply. Although the stated objectives of the proposal – ensuring profits are better applied to promoting the sustainable and diversified development of Macau – are seen as legitimate, MdME says it “creates a significant disincentive to private investment and does not guarantee that the profits retained will be used to make further investments. “Ultimately, the business uncertainty the measure introduces (as reflected in recent market sentiment) may compromise the ability of concessionaires to remain competitive thus affecting their ability to achieve the exact same policy objectives the proposal intends to accomplish.”
https://www.asgam.com/index.php/2021/10/07/law-firm-says-alternative-options-available-to-macau-than-limiting-dividends-under-proposed-gaming-law-amendments/
MGM
O CEO da MGM Resorts International relativizou as preocupações do sector em relação às ideias do Executivo para a revisão da lei do jogo. Bill Hornbuckle não vê um “grande desafio” na reforma legal, realça a boa relação com o Governo e o papel preponderante da indústria na região “Até prova em contrário, não vamos reagir exageradamente a cenários hipotéticos. Esperamos que a racionalidade impere no final, porque é a economia de Macau que está em causa”. Foi desta forma que o CEO da MGM Resorts International, Bill Hornbuckle, respondeu ao hipotético aperto regulatório que pode surgir com a revisão da lei do jogo, em entrevista ao portal Yahoo Finance. https://hojemacau.com.mo/2021/10/06/ceo-da-mgm-confia-que-racionalidade-ira-prevalecer-na-revisao-da-lei-do-jogo/
Signs China is tightening its grip on the gaming industry in Macau triggered a record sell off in the big six operator stocks, although leading gaming industry consultant, Ben Lee, said the latest edict shouldn’t have come as such a surprise. https://agbrief.com/news/macau/03/10/2021/law-changes-trigger-stock-exodus-but-should-it-have-been-a-surprise/
Macau investors and operators are seeking further clarity from the government over draft proposals that seek to increase supervision over the gaming industry. https://agbrief.com/news/macau/03/10/2021/investors-casino-operators-anxious-for-more-details-on-macau-gaming-laws/
The Macau government’s recent proposals for changes to the legal framework of the city’s casino industry – including oversight of operator dividends and a system involving government-appointed delegates to monitor the operators – are being interpreted by a brokerage as “effective SOE-isation” of the industry. The latter is a reference to “state-owned enterprise” (SOE), a term typically used to describe a company or legal entity that is controlled on behalf of a government in order to take part in commercial activities. Referring to the casino industry legal framework proposals announced on September 14, analysts DS Kim, Amanda Cheng and Livy Lyu, of brokerage JP Morgan Securities (Asia-Pacific) Ltd, said in a Sunday note: “We interpret the government’s surprise announcement as an effective ‘SOE-isation’ of the industry”. https://www.ggrasia.com/investors-fret-on-soe-isation-of-macau-ops-jp-morgan/
WYNN Recent proposals on the future regulation of the Macau casino industry were “not punitive” but “practical,” said Matt Maddox (pictured in a file photo), chief executive of Wynn Resorts Ltd, the U.S.-based parent of Macau casino operator Wynn Macau Ltd. He was speaking to TV host Jim Cramer on business news channel CNBC. “I think what’s going on in Macau is not punitive, it’s practical. They’re moving to a really highly-regulated environment, just like we experience here in the United States,” Mr Maddox stated in the interview aired on Thursday. https://www.ggrasia.com/macau-govt-proposals-practical-not-punitive-wynn-ceo/
27/9
O analista sénior Edward Moya, da corretora Oanda, considera que as alterações legislativas na operação de casinos em Macau "vão esmagar as margens e todo o crescimento" que os operadores norte-americanos antecipavam "É muito negativo para as ações dos casinos americanos", afirmou o especialista, depois de uma queda arrasadora dos títulos em bolsa por causa do processo de revisão da legislação pelo governo chinês. "O que começamos a ver é o aumento do receio de que a repressão do governo chinês sobre vários sectores seja sentida com mais força nas ações do jogo", indicou Edward Moya, refletindo o nervosismo dos investidores que levou a perdas superiores a 18 mil milhões de dólares em bolsa. https://www.rtp.pt/noticias/economia/alteracoes-das-regras-em-macau-vao-esmagar-margens-de-casinos-norte-americanos-analista_n1351216
25/9
O Governo anunciou a revisão da lei do jogo e das concessões e o impacto foi imediato, com quedas significativas na Bolsa de Hong Kong. Rui Pinto Proença, advogado da MdME e especialista em questões de jogo, reconhece a necessidade de alterar a legislação “ultrapassada”. Mas lança também o alerta sobre o perigo das incertezas deixadas no ar ... em pontos fulcrais: o fim das subconcessões; os delegados locais, ou o controlo na distribuição de dividendos. E o tempo é curto para as decisões que operadoras e investidores terão de tomar https://plataformamedia.com/2021/09/25/concessionarias-precisam-de-tempo/
25/9
A proposta leva os investidores a reconsiderar o investimento. O retorno financeiro da indústria do jogo depende do mercado continental e, devido à pandemia, o capital chinês já não flui da mesma maneira. É possível que o governo central restrinja ainda o mais o desenvolvimento da indústria, com o objetivo de reter os lucros no país. O principal objetivo de uma empresa é o lucro, distribuindo o mesmo em dividendos pelos seus acionistas. Receio que, no futuro, as empresas percam o interesse no Território. Na região, outros também procuram desenvolver a indústria do jogo, como Penghu, em Taiwan, o Japão ou até lugares que já possuem estas infraestruturas, como o Camboja, Malásia ou Singapura. Todos estão interessados em absorver o capital das empresas de Macau. https://plataformamedia.com/2021/09/25/a-estrutura-do-jogo/
24/9
“Recent crackdowns have proven that few
sectors are safe from Beijing’s control,” says the FT’s Lex column. “No
industry looks as vulnerable as Macau’s gambling market.” Shares in the
territory’s casino operators fell sharply amid a regulatory review that may end
up cutting the number of casino licences in the world’s largest gambling hub.
“Should the new laws limit the number of licences below six, some operators
could go out of business” when all current permits expire in June 2022. https://moneyweek.com/economy/asian-economy/chinese-economy/603881/xi-jinpings-crackdown-spreads-to-macau-and-hong-kong
23/9
A Macau government proposal that its approval should be required before local casino operators could distribute dividends to shareholders came as a “surprise”, management at Macau licensee SJM Holdings Ltd was cited as saying in an investor call organised by Goldman Sachs (Asia) LLC. But SJM Holdings representatives indicated – said the institution in a Sunday note – that the dividend-oversight idea was “understandable” in light of possible Macau government concerns about operators’ liquidity. https://www.ggrasia.com/macau-govt-dividend-oversight-plan-maybe-for-liquidity-sjm/
17/9
O primeiro guião para a renovação das concessões, revelado pela Macau Business, anuncia o fim das subconcessões, controlo local na gestão, e a imposição de envolver os casinos diretamente na diversificação económica. Ou seja, a indústria do jogo vai ter de investir e apoiar áreas que garantam o fim do seu próprio domínio. Não surpreende… mas é um sapo difícil de engolir. https://www.plataformamedia.com/2021/09/17/jogo-em-alerta-vermelho/
BOLSA
22/9 A week after plummeting 26% and losing more than US$18 billion in value in the space of just 24 hours, Macau’s gaming stocks showed some signs of recovery on Tuesday after the Gaming Inspection and Coordination Bureau (DICJ) held its first consultation with operators over proposed changes to the gaming law. https://www.asgam.com/index.php/2021/09/22/macau-gaming-stocks-on-road-to-recovery-as-investor-fears-ease/
17/9: Shares of Macau casino operators on Wednesday shed as much as a third of their value, losing about $18 billion, as the government kicked off a regulatory overhaul that could see its officials supervising companies in the world's largest gambling hub. With Macau's lucrative casino licences up for rebidding next year, the plan spooked a Hong Kong market already deep in the red after Beijing's regulatory crackdown on sectors from technology to education and property that sliced hundreds of billions of dollars off asset values. https://www.iol.co.za/business-report/companies/billions-lost-in-major-casino-scandal-in-macau-32df9e58-ea37-4744-b1c7-35ae5715ae0b
“PÂNICO IRRACIONAL” AFECTOU OPERADORAS NA BOLSA https://jtm.com.mo/local/panico-irracional-afectou-operadoras-na-bolsa/
As China looks to crack down on "undesirable" activities by its citizens, investors have to wonder if there will be restrictions on visiting Macao. Worse yet, Macao's relationship with China is complicated. The region is what's known as a Special Administrative Region of the People's Republic of China, with economic autonomy and separate borders but some control from China. It's one of the "One Country, Two Systems" regions, just like its neighbor Hong Kong. As China exerts more control over Hong Kong and puts limitations on businesses and consumers within China, there's a risk it will do the same in Macao. Until now, that risk has seemed small -- but it's absolutely worth taking it seriously now, even if we don't know what the outcome of any reforms or Chinese intervention will look like. https://www.nasdaq.com/articles/macao-nightmare%3A-what-we-know-about-the-future-of-gambling-there-2021-09-20
17/9
The latest developments in relation to Macau’s gaming concession retendering process has given a chance for Beijing to “reset the table” in respect to the makeup of Chinese vs American casino companies in Macau. Ben Lee, managing partner of IGamiX Management Consulting, told Bloomberg in an interview: “From Beijing’s point of view, how did we let the American operators end up with 50 percent of such a dominant industry that is such an important part of Macau’s landscape? So this is the first opportunity they have to reset the table.” https://agbrief.com/news/macau/17/09/2021/beijing-given-chance-to-reset-the-table-in-macau-lee/?utm_source=Asia+Gaming+Brief&utm_campaign=0d053cf59f-EMAIL_CAMPAIGN_2021_08_04_05_21_COPY_01&utm_medium=email&utm_term=0_51950b5d21-0d053cf59f-69255637&ct=t(EMAIL_CAMPAIGN_8_31_2021_22_37_COPY_01)&goal=0_51950b5d21-0d053cf59f-69255637 + https://www.bloomberg.com/news/videos/2021-09-16/igamix-macau-gaming-sector-is-definitely-still-investable-video
16/9
Considerando ser difícil definir, através da análise da procura do mercado, qual será a dimensão “adequada” para o sector do jogo, o director do Centro Pedagógico e Científico na Área do Jogo do IPM adverte que a saída de uma ou duas operadoras afectaria o emprego e a sociedade em geral, pelo que apoia a manutenção de seis licenças. Propondo um prazo de concessão de oito a 10 anos e um mecanismo de negociação para a renovação das licenças, Wang Changbin enaltece o facto do documento de consulta da revisão da lei do jogo prever a introdução de dois tipos de responsabilidade criminal às operadoras, por entender que contribuirá para fortalecer a fiscalização e elevar a confiança do público no sector. Em declarações ao Jornal TRIBUNA DE MACAU, Wang Changbin apontou que, apesar do Secretário para a Economia e Finanças realçar que importa manter uma dimensão “adequada” do sector, essa definição não será fácil, uma vez que o mercado regista constantes modificações. “A questão pode ser ponderada sob outro ângulo. Na sociedade, existe um tipo de opinião que defende a manutenção de pelo menos seis licenças, para manter o panorama actual, evitando grandes mudanças. Se o número das licenças baixasse para três ou quatro, e assim duas ou três operadoras precisassem de sair de Macau e fechar os casinos e empreendimentos, a economia local sofreria impactos que se estenderiam ao emprego e até a toda a sociedade. Se a consequência da saída de uma ou duas operadoras de jogo fosse uma sociedade abalada, não valeria a pena. Acho que é mais adequado manter as seis licenças de jogo”, justificou o académico, acrescentando que a experiência de duas décadas mostra que esse número é adequado para Macau. https://jtm.com.mo/local/especialista-defende-manutencao-de-seis-licencas-para-operar-casinos/
16/9
Ouvido pelos jornalistas, e à margem do lançamento do livro “Breve Exposição do Conteúdo da Lei Básica de Macau, o presidente da Associação dos Advogados de Macau, Jorge Neto Valente, considerou que o anúncio “afectou muito” o sector. “Não me parece o melhor começo para quem quer criar confiança e dizer que vai começar uma Bolsa em Macau. Penso que a maneira de apresentar não foi a melhor. Não chega ter ideias, é preciso saber apresentá-las e escolher os melhores momentos”, criticou o advogado. Para Neto Valente é preciso que o Governo também explique qual será o papel dos delegados para efeitos de fiscalização na estrutura da administração das concessionárias de jogo, porque “isto não é novidade”. “O Governo tem delegados em todas as suas concessões fora do jogo. Agora, até que ponto é que vão interferir ou não na administração é que é preciso saber. O Governo tem de clarificar o mais depressa possível, para dar tranquilidade à nossa existência”, notou o causídico, revelando que a AAM não foi dita nem achada no processo. https://pontofinalmacau.wordpress.com/2021/09/16/neto-valente-considera-que-anuncio-de-limitar-a-distribuicao-de-lucros-dos-casinos-foi-prematuro/
16/9
O especialista na área do jogo Carlos Eduardo Coelho disse hoje à Lusa que limitar a distribuição de lucros dos casinos de Macau, que está a ser considerada pelo Governo, pode levar ao afastamento de investidores. "Esta parece ser de facto um questão importante e a consagração de soluções não adequadas poderá levar a um afastamento de investidores institucionais, que são importantes para garantir a competitividade e o prestígio internacional das concessionárias de jogo. Não se esqueça que, antes de mais, as concessionárias são sociedades comerciais", sublinhou o advogado e especialista na área do jogo, da MdME Lawyers. https://www.rtp.pt/noticias/economia/limitar-distribuicao-de-lucros-dos-casinos-de-macau-pode-afastar-investidores-especialista_n1348786
16/9
Brokerage JP Morgan Securities (Asia Pacific) Ltd said in a Wednesday note it was downgrading to “neutral/underweight”, from “overweight”, all Macau gaming stocks. This was due to a “policy signal” on Tuesday from the Macau authorities, “indicating heightened scrutiny on capital management and daily operation,” linked to a proposed new regulatory regime for the industry. The government has said Macau’s gaming law needs to be updated as a linked issue to a fresh public tender process for Macau gaming rights. The city’s existing six gaming concessions are due to expire in June 2022. JP Morgan said the “level of actual regulation/execution” that would apply, “remains a moot point,” but the announcement would have “already planted a seed of doubt in investors’ minds”. That was “probably enough to de-rate these names until clarity emerges on key points, an event that’s unlikely to happen this year, in our view,” wrote analysts DS Kim, Amanda Cheng, and Livy Lyu. https://www.ggrasia.com/no-point-fighting-policy-for-macau-market-jp-morgan/ It is not yet announced how many concessions will be granted but to us, it is clear there will be at least six – the current six) and the chances of additional concessions are low as the government repeated the mantra of sustainable development,’ Sandford C. Bernstein analysts indicated in a note on the public consultation announcement. https://www.macaubusiness.com/gaming-law-proposal-clearly-shows-govt-intentions-to-reign-in-concessionaires-and-junket-operators-brokerages/ Um dia depois do Governo da RAEM ter anunciado o início de uma consulta pública sobre a revisão do regime jurídico da exploração de jogos de fortuna ou azar em casino, as acções de todas as operadoras cotadas na Bolsa de Valores de Hong Kong registaram quebras muito expressivas, sinalizando as preocupações dos investidores sobre o eventual aperto do quadro regulatório do sector. As empresas com capitais americanos foram as mais penalizadas, com as acções da Sands China, Wynn Macau e MGM China a caírem 32,51%, 28,97% e 26,81%, respectivamente. https://jtm.com.mo/local/receios-de-investidores-consultoras-derrubam-accoes-das-operadoras/
15/9
China (1928.HK). Peers MGM China (2282.HK), Galaxy Entertainment (0027.HK), SJM (0880.HK) and Melco Entertainment (0200.HK) all fell heavily, bringing the drop to HK$109 billion ($14 billion). The slump came after Lei Wai Nong, Macau's secretary for economy and finance, late on Tuesday gave notice of a 45-day consultation on the gambling industry starting Wednesday, saying there were still some deficiencies in industry supervision. Beijing, increasingly wary of Macau's acute reliance on gambling, has not yet indicated how the licence rebidding process will be judged. https://www.reuters.com/business/macau-kicks-off-public-gaming-consultation-ahead-casino-rebidding-2021-09-15/ Yesterday was an abject lesson in how markets can panic. How fear can really win out over greed. We’re told markets tend to overreact to bad news, but honestly, yesterday was a bit ridiculous. At the close of trading on Tuesday night, the Hong Kong listed entities of Macau’s six concessionaires boasted a market capitalization of some HK$549 billion (US$70.6 billion). At the same time last night that number was HK$406 billion (US$52.2 billion), a wipe out of 26% in value – HK$143 billion (US$18.4 billion). https://www.asgam.com/index.php/2021/09/16/opinion-irrational-panic-wipes-26-us18-4-billion-off-macau-operators-market-cap-yesterday/
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