HONG KONG (Reuters) – Macau’s authorities stated on Friday it has prolonged on line casino concession licences for MGM China and SJM Holdings till 2022 on the earth’s largest playing hub.
Each operators should pay 200 million patacas ($25 million) every for the extension, which brings the expiry date for his or her on line casino operations consistent with these of Macau’s different 4 on line casino operators, the federal government stated.
Shares of each MGM China and SJM have been suspended on Friday.
The expiration of on line casino licences within the Chinese language territory of Macau has been a key uncertainty for traders, executives and analysts, with the federal government beforehand declining to present any details about the method.
Macau’s on line casino operators, which additionally embody Sands China, Wynn Macau, Galaxy Leisure and Melco Resorts & Leisure, will all have to rebid for licenses as soon as they expire in 2022. There was no element as to what or how the method will probably be.
The license state of affairs will stay an overhang on the shares of the six operators effectively previous the June 2022 expiration, Grant Govertsen, an analyst at Union Gaming in Macau, stated.
“We consider the extensions have extra to do with making the last word activity of the license rebid state of affairs simpler, whereas on the similar time ensuring the labour market stays secure.”
Reporting By Farah Grasp; Enhancing by Himani Sarkar