Non-gaming (geral - há outras entradas)
set23
Os apoios das concessionárias às Pequenas e Médias Empresas (PME) estão a ser desviados para apoiar os projectos do Governo de revitalização da cidade. A hipótese é colocada pelo deputado Ron Lam, que questiona o facto de quase um ano após a atribuição das novas concessões de jogo, apenas serem conhecidos os planos das concessionárias para financiar projectos do Governo.
No âmbito das novas concessões, as operadoras de jogo são obrigadas a apresentarem um plano sobre as actividades que vão apoiar no ano seguinte, no âmbito das exigências de responsabilidade social. O Executivo de Ho Iat Seng tem evitado tornar esses documentos públicos, sendo a informação inexistente.
No entanto, nas últimas semanas, foi anunciado pela secretária para os Assuntos Sociais e Cultura, Elsie Ao Ieong U, que as concessionárias vão ser responsáveis pelos projectos governativos de revitalização da zona da Barra, Rua da Felicidade, Ponte-Cais nº 23 e 25, no Porto Interior, a zona perto da Avenida de Almeida Ribeiro e Rua de 5 de Outubro, a zona da Fábrica de Panchões Iec Long e ainda a área dos Estaleiros Navais de Lai Chi Vun.
https://hojemacau.com.mo/2023/09/19/concessionarias-ron-lam-questiona-se-governo-esta-a-secar-apoios/
jun23
Macau authorities are further placing pressure on gaming operators to highlight non-gaming activities – in particular cultural projects and sporting events – by setting up a mechanism to gather project applications and forward them to the operators.
Announced on July 4th, the Cultural Affairs Bureau notes that the project encompasses a ‘forwarding mechanism for cultural and sports projects’, noting that gaming operators can ‘analyze and respond (to the applications) independently’.
The move comes even as the city awaits to hear the government’s non-gaming diversification agenda – delayed as it evaluated the proposals from Macau’s six gaming concessionaires.
The six operators, under their 10-year gaming licenses which commenced on January 1st, are required to turn in an annual development plan, including a breakdown of expenditure.
https://agbrief.com/news/macau/05/07/2023/macau-further-pushing-operators-to-host-cultural-and-sports-events/?utm_source=Asia+Gaming+Brief&utm_campaign=2162f94bac-EMAIL_CAMPAIGN_5_19_2022_13_42_COPY_01&utm_medium=email&utm_term=0_51950b5d21-2162f94bac-69255637&ct=t(EMAIL_CAMPAIGN_5_19_2022_13_42_COPY_01)&goal=0_51950b5d21-2162f94bac-69255637&mc_cid=2162f94bac&mc_eid=31e20475e6
jun23
More and more investment bank studies affirm the positive impact of non-gaming activities on financial results. This time, Citigroup says there is apparently a positive impact that the Jacky Cheung concerts bring to Macau’s gaming operator Sands.
jun23
Macau concessionaire SJM Resorts said Monday that more than 1,000 of its former gaming employees have been trained and transferred to non-gaming departments.
The “Cross training development program for gaming practitioners” was jointly launched by SJM and Macau’s Labor Affairs Bureau, aimed at enabling gaming employees to be trained to work in departments such as catering, marketing and human resources, the company announced.
In a speech at the event, SJM Resorts Managing Director Daisy Ho said, “SJM has responded to the Macau SAR Government’s strategy of appropriate diversification by providing systematic professional certification training courses for gaming staff to help them enter non-gaming positions more quickly and better.”
https://www.asgam.com/index.php/2023/06/20/sjm-trains-and-transfers-1000-former-gaming-employees-to-non-gaming-roles/
jun23
ndustry competition as well as the policy directives of the Macau government, are driving the city’s casino concessionaires to increase the amount and variety of their non-gaming entertainment, suggests a local gaming scholar in comments to GGRAsia. A particular focus is appealing to families and younger consumers from China and the rest of Asia, says Carlos Siu Lam.
“With the keen competition among the casino operators, Macau has performed better than expected in its non-gaming segment,” stated Mr Siu, associate professor at the Centre for Gaming and Tourism Studies of Macao Polytechnic University.
There has been an uptick in the volume and variety of announced events since the ending of most Covid-19 -related travel restrictions at the start of the calendar year. They include arena-based or banquet-hall concerts by artists drawn from across the region; including the neighbouring city of Hong Kong, as well as South Korea, Taiwan, and mainland China.
https://www.ggrasia.com/macau-ops-make-progress-on-non-casino-ents-scholar/
mai23
A professor from the Center for Gaming and Tourism Studies of the Macao Polytechnic University cautions that the city’s gaming operators should avoid having the same types of non-gaming investments in order to have a shot at economic diversification.
mai23
The co-chairman and executive director of gaming company SJM Holdings, Daisy Ho, said that betting on non-gaming projects, as required by the authorities, is not a problem and that the company wants to boost cultural exchanges with Portugal.
Betting on non-gaming elements and foreign visitors are two of the requirements set out in the public tender for the granting of gaming concessions by the Macau authorities, with the aim of pushing for economic diversification.
“This is not necessarily a problem for integrated resorts operators that can add non-gaming activities to explore what is still a huge potential market,” Daisy Ho stressed.
https://www.macaubusiness.com/non-gaming-investments-not-a-problem-theres-huge-market-potential-daisy-ho/
jan23
ANALISE REUTERS (IMPORTANTE)
Casinos have committed to investing a total of $15 billion in the coming decade, 90% of which must be spent on non-gaming.
But operators will find it hard to monetise their non-gaming ventures given their poor track record since 2001, when the former Portuguese colony first liberalized the industry, executives and analysts said.
Non-gaming revenues, which averaged around 5% of overall gaming revenues pre-COVID, must grow to more than 30% in the next decade, said Ben Lee, founder of Macau gaming consultancy IGamiX. "For the past 20 years, none of the operators have managed to establish any significant progress in non-gaming.” “Contrary to the vaunted Las Vegas model, non-gaming in Asia does not carry the same profit margin as spending behaviour is quite different over here,” Lee said, while adding that Galaxy, Melco and Sands were likely to fare better at diversifying based on their track record and management team. Macau's visitors have traditionally been male gamblers aged 30 and older, but more young families and women have started visiting in recent years.
New rules also stipulate that companies must routinely submit to the government the progress of their investment projects, the value of their investments and the execution period.
Increased regulatory oversight comes as Macau casinos face much higher debt levels versus 2019. Net debt increased four-fold to $23 billion in 2022 and it may only peak by end 2023 at $24 billion, Morgan Stanley said in a December note.
Compounding casinos' challenges, Macau lacks connectivity with international markets, has dilapidated infrastructure and a shortage of skilled labour, as well as reputational damage over its COVID management, executives said.
Macau has few direct flights from potential markets outside China, while transport within the city is limited to move large groups of people around, said David Green, head of Macau gaming consultancy Newpage.
“There is no indication that I have seen that the government is, or intends to address these weaknesses. Given the serial mismanagement of public works…it leaves concessionaires with a less than optimal host attraction proposition.”
Alidad Tash, who worked as a senior executive in Macau’s casinos since 2006 and now runs consultancy 2nt8, said the biggest challenge for operators was that mainland Chinese already have access to conventions, restaurants, shows and shopping in their own cities.
“What they come to Macau primarily for is the one thing that is not legally allowed within China: gambling.”
https://www.reuters.com/business/macau-casinos-deal-themselves-tough-hand-with-big-non-gaming-investment-pledges-2023-01-03/
dez22
Os contratos das novas concessões para explorar casinos na RAEM obrigam as seis operadoras a investir um total de quase 119 mil milhões de patacas nos próximos 10 anos, com 91,4% desse valor a visar projectos não relacionados com o jogo e a atracção de clientes estrangeiros. Os compromissos globais variam entre 11,8 mil milhões e 30,2 mil milhões, respectivamente nos casos da Melco e Venetian, e exigirão a apresentação de relatórios anuais ao Governo. O Chefe do Executivo advertiu que as empresas terão de cumprir “com seriedade” as suas promessas e responsabilidades sociais
https://jtm.com.mo/local/projectos-sem-jogo-representam-91-dos-investimentos-prometidos/
dez22
Following the signing of the new gaming concession contracts by Macau’s six operators, analysts at Morgan Stanley are predicting that Macau’s gross gaming revenue values will exceed $22 billion by 2027.
If GGR reaches this figure, it will also trigger a 20 percent mandatory increase in the operators’ non-gaming spend, according to the terms of their new gaming concessions, signed last week.
The analysts note that this change could mostly ‘represent a much larger burden on FCFE (free cash flow to equity) and EBITDA’ for operators MGM China and SJM.
Under the condition of this gaming revenue increase, the analysts note that Sands, Galaxy and Melco ‘look better positioned’ and that, in particular, Melco would see an ‘even smaller’ percentage increase to its FCFE and EBITDA, as compared to 2019.
Also regarding the investments pledged by the companies, Morgan Stanley analysts predict that ‘Macau will allow operators to start investing only from 2024, given that 2023 will still be a recovering year (instead of normalized)’.
In total, the concessionaires have pledged $14.79 billion in new investment over the 10-year period, with Sands pledging $3.76 billion, Galaxy $3.53 billion, Wynn $2.21 billion, MGM China $2.08 billion, SJM $1.75 billion and Melco $1.47 billion.
Some 91 percent of the total investment that the concessionaires have pledged is set to go to non-gaming, with the operators required to map out their detailed planning and expenditure, submitting annual roadmaps.
https://agbrief.com/intelligence/deep-dive/21/12/2022/analysts-macau-ggr-to-top-22bln-by-2027-trigger-20-non-gaming-investment/?utm_source=Asia+Gaming+Brief&utm_campaign=a5e4a825b6-EMAIL_CAMPAIGN_5_19_2022_13_42_COPY_01&utm_medium=email&utm_term=0_51950b5d21-a5e4a825b6-69255637&ct=t(EMAIL_CAMPAIGN_5_19_2022_13_42_COPY_01)&goal=0_51950b5d21-a5e4a825b6-69255637
dez22
Non-gaming investment outlined by Macau’s six newly-reinstalled casino concessionaires should be helpful in “driving incremental” earnings before interest, taxation, depreciation and amortisation (EBITDA) in the “medium term”, says a brokerage. Some commentators spoken to by GGRAsia are more sceptical.
Even the more upbeat assessment, from JP Morgan Securities (Asia Pacific) Ltd, acknowledges it is “hard to ‘model’ these projects” in earnings terms “given lack of details”.
Nonetheless the institution’s analyst DS Kim said in a Sunday note: “We do believe these projects should collectively make Macau a more holistic and attractive tourist destination over time, in turn driving incremental EBITDA medium-term if we include indirect benefits on the gaming side.”
Two industry commentators expressed to GGRAsia reservations about the earnings potential of additional non-gaming in Macau.
“The concessionaires are all set up as gaming companies… the concessions they hold are for the conduct of casino games of chance,” industry consultant David Green told GGRAsia.
He added: “Aside from offerings arguably ancillary to gaming, such as entertainment, food and beverage and hotel accommodation, they have no track record to speak of with other types of non-gaming investment.”
Ben Lee, managing partner of IGamiX Management and Consulting Ltd, told GGRAsia: “The issue of ramping up non-gaming is going to be an interesting challenge” in the context of Macau’s labour-importation policies.
“Macau will have to somehow realign its local residents towards greater acceptance of foreign skills and expertise in the development of the new non-gaming amenities,” he added.
https://www.ggrasia.com/fresh-non-gaming-shot-in-dark-for-macau-commentators/
Dez22
Macau’s six casino operators will have to increase their pledged non-gaming investment for the next decade by as much as 20 percent if citywide annual gross gaming revenue (GGR) reaches MOP180 billion (US$22.39 billion). That is according to information disclosed by each of the companies via filings to the Hong Kong Stock Exchange.
Under their new 10-year concessions, due to start on January 1, the Macau operators have as a whole pledged to the government to spend in aggregate MOP108.7 billion on non-gaming and exploring overseas-customer markets.
The percentage of required additional non-gaming investment would be limited to 16 percent if the MOP180-billion trigger were reached only in 2028. A sliding scale of minus 4 percentage points to the required additional non-gaming investment would applied for the following years. For instance, the additional investment would be 12 percent, if the MOP180-billion trigger were only reached in 2029.
If the MOP180-billion target is only achieved in 2032 – the final year of the new concessions – no additional non-gaming investment would be required.
According to information disclosed to the Hong Kong bourse, Galaxy Entertainment has committed to invest MOP28.35 billion over the course of its new 10-year concession. The figure includes MOP27.45 billion on non-gaming investment.
Melco Resorts has undertaken to invest MOP11.82 billion overall, of which MOP10.00 billion will be applied to non-gaming related projects.
In the case of MGM China, the overall pledged investment for the next 10 years is MOP16.70 billion, of which MOP15.00 billion will be directed to non-gaming projects.
Sands China has pledged a total investment of MOP30.24 billion over the course of the next 10 years, including MOP27.8 billion (approximately US$3.5 billion) on non-gaming projects.
As for SJM Holdings, it has committed to invest an aggregate of MOP14.03 billion during the lifespan of its new concession. That includes a non-gaming investment of MOP12.00 billion.
Wynn Macau Ltd has made a commitment to invest MOP17.73 billion in the Macau market between 2023 and 2032. Of the amount, MOP16.50 billion will be used for non-gaming projects.
https://www.ggrasia.com/macau-casino-firms-to-up-non-gaming-spend-if-ggr-us22bln/
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