New restrictions on Macau casino licences

[jetset]

LIMITS PLACED ON MACAU LICENSES

Good news for those who already have one...


Shares of casino operators with properties in Macau climbed this week after the Chinese enclave's top official said it will place a hold on new gambling licenses.

Associated Press reports that Edmund Ho told Chinese lawmakers that no further casino concessions or sub-concessions would be issued in the foreseeable future. The government also will not approve any new applications from the territory's 28 casinos for additional gambling tables or slot machines, he said.

The comments were seen as good news for companies that already have a foothold in the booming gambling enclave 40 miles west of Hong Kong, including Las Vegas Sands Corp., MGM Mirage and Wynn Resorts.

[Simmo!]

Hmmm...so does that mean that he Cotai Strip is set to remain a building site forever? That's a real shame. So much for the Vegas of the East.

[chuchu59]

It's just a political show to ease pressure brought about by the local population and the Chinese authorities. In 3-5 years time and after a period of consolidation together with pent-up demand, it will be full steam ahead. Unless there is a recession in Asia,the gambling dollar will prove to be too lucrative and they are not going to surrender this to the likes of Singapore or Taiwan although the latter may have to be handled more sensitively.

[spearmaster]

What chuchu said

I had to laugh when I read the "announcement" because for most of us in Asia, this is old news - it was known ever since the first licenses were awarded that there were not likely to be any more for quite some time. So I am at a loss as to why they even bothered to announce what was already the status quo.

The real news is that they will not approve applications for further tables or slot machines. This could be good in that it will force a casino wanting to bring in new equipment being forced to remove old equipment, rather than expanding floor space.

The Cotai Strip has already been allotted and construction started, so nothing will change there. All the properties are still from the same "3 + 3" licensees.