Macau will begin accepting offers for six casino licenses this Friday, July 29, as the Chinese gaming hub struggles to recover after Beijing’s anti-corruption campaign and a Covid-19-induced economic slump.
The former Portuguese colony is the only territory in China where casinos are allowed, and it issues just six operating concessions to a multibillion-dollar industry that until recently was bigger than Las Vegas.
Macau, which adheres to China’s strict zero-covid strategy, is in the midst of a lockdown to stop the spread of the coronavirus that, earlier this month, temporarily closed most businesses – including casinos, which resisted shutdowns for more than two years. Casino revenue is down 46% in the first six months of this year, according to Bloomberg.
For decades Macau’s gaming industry was run as a monopoly by casino magnate Stanley Ho, but in 2002 more operators were brought in and issued 20-year concessions as part of an effort to liberalize and create a fairer market.
But in January authorities cut the casino licensing period from 20 years to 10 years and unveiled regulations that sought to increase local ownership and government oversight.
Chinese President Xi Jinping has led an anti-corruption campaign that has seen an increase in the number of high-profile businessmen traveling to gamble in Macau, where money laundering cases have also increased.
Former Macau chief Alvin Chau is facing a lengthy jail term after being detained last year on charges of fraud, money laundering and illegal gambling.
Macau’s casino giants welcomed the new rules earlier this year, but analysts have warned that the recovery may still have a long way to go.
Proposals for the six licenses will be judged on factors such as the ability to court foreign tourists, previous business experience and proposals to avoid illegal activities, officials said on Thursday.
Applicants must submit their proposal together with a minimum deposit of 10 million patacas (US$1.2 million). The bidding period will end on September 14, they added.