Press conference regarding extension of two gaming concession contracts
The Government has approved an application to extend the gaming rights contracts of Sociedade de Jogos de Macau, S. A. and of MGM Grand Paradise, S.A. under the extension, each contract will run until 26 June 2022, inclusive.
The Secretary for Economy and Finance, Mr Leong Vai Tac, today made the announcement during a press conference organised by the Office of the Government Spokesperson at the Government Headquarters.
The Government had made the decision on the extension with a view to aligning the expiry date of the two companies’ gaming rights with those of the other four gaming concessions or sub-concessions. This would assist the Government in its effort to coordinate work relating to a future new public tender process for licence contracts for the operation of games of fortune or chance, or other casino games.
The extension granted to the two companies was also deemed helpful for the maintenance of social stability, particularly the stability of the job market, Mr Leong added.
The Government specifically took into consideration – when arriving at its decision – the issue of whether terms stipulated in the extended contracts fulfilled the interests of Macao’s overall and long-term development. Some terms were especially aimed at providing better protection for the employees of those companies, upon either their retirement or their resignation.
Under terms in the addendum to the relevant licence contracts for the operation of casino games of fortune or other ways of gaming, each of the two operators has to pay the Government a one-off amount of 200 million patacas.
The amount did not void the companies’ obligations to pay respectively: annuity set by their respective gaming rights contracts; special gaming tax; and other duties of contributions set out in the contracts, Mr Leong said.
In addition, the two casino operators will have to – within three months of the signing of the extension contacts – enrol their respective employees in the Government’s Non-mandatory Central Provident Fund System, and set up a labour creditor’s rights protection fund.
Regarding the future development of the gaming industry, the Secretary stated the Government was committed to strengthening supervision over the sector and optimising relevant laws and regulations.
Meanwhile, the Government had been diligently preparing for work relating to a future new public tender process for licence contracts for the operation of games of fortune or chance, or other casino games, including via the pursuit of in-depth analysis and research on existing gaming laws and regulations; so as to align the gaming sector’s development with the advancement of Macao’s strategic position as a world centre of tourism and leisure.
The Government would carefully analyse how work relating to a future new public tender process would assist in achieving Macao’s adequate economic diversification and in fostering Macao’s competiveness internationally and regionally, Mr Leong added.
According to Law no. 16/2001 “Legal Framework for the Operations of Casino Games of Fortune”, licences are issued under a concession period lasting a maximum of 20 years. If a concession is awarded for a period shorter than 20 years, the Government may authorise an extension, provided it does not exceed the maximum 20-year period per concession as stated in the law. Any extension granted by the Government must be confirmed at the latest six months prior to the expiry date of the relevant concession.
Regarding licensing granted under a concession that has reached its 20-year limit, such a concession may be extended exceptionally by the Chief Executive in increments of time totalling no more than five years.