• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 6 September 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Macau license re-tendering the number one concern among global gaming investors

Newsdesk by Newsdesk
Fri 14 Dec 2018 at 05:03
Macau Cotai panorama
Print Friendly, PDF & Email

The looming re-tendering process for Macau gaming concessions has emerged as the key risk concern among industry investors globally, including lingering questions over potential concession loss and the addition of a seventh or eighth operator.

Such Macau concerns were outlined in a research note issued by brokerage Bernstein on Thursday following a four-week road trip in which analysts spoke to investors in the US, Europe and Canada. According to Bernstein’s Vitaly Umansky, Kelsey Zhu and Eunice Lee, the five most asked questions by investors all related to Macau and most notably to concession renewal – most notably the potential impact of US-China trade relations and whether new operators may be welcomed into the market.

“Overall, sentiment related to Macau gaming stocks (and their US parent companies) is still on the negative side for most investors we had spoken with,” the analysts state. “The key issue of concern is related more to the China economy and geopolitical uncertainty rather than Macau gaming slowdown. China economic softening and uncertainties surrounding the US/China trade dispute have been key focal areas of discussion.

“Concession renewal became the key risk warranting discussion in most investor meetings. As we reiterate … we do not believe the risk of concession loss is material, but some economic leakage for all six gaming operators in the form of higher taxation, or (lower-ROI type of) non-gaming investment is likely.”

Despite investor concerns, Bernstein said the chances of any of the current six Macau operators losing their gaming licenses are extremely low.

“The result would be quite counter-effective to China’s attempts to open up the country for greater foreign investment and the negative PR surrounding such action would be detrimental,” it said.

“US gaming operators can also choose to shut down the entire gaming infrastructure in Macau (a nuclear option) by shutting down the non-gaming elements of the integrated resorts. The result would be unemployment, a drop in tax revenues and a chaotic environment in the city – something that we do not believe the Macau or the Chinese governments would want.”

Bernstein is also more circumspect in regards to the potential for a seventh or eight operator being welcomed in due to competing interests and pressures to reduce the tax burden on current operators as a result of increased competition. It also poured cold water on suggestions a Chinese company would be front-of-line to be granted any new licenses.

“A seventh or eighth concession will inevitably result in favoritism to a specific party and create the impression that Macau wants outsized growth in the gaming industry,” it said. “We do not believe the Chinese government wants any mainland-Chinese companies to be involved in the gaming industry in Macau. In China, “Huang-du-du” (prostitution, gambling and drugs) are viewed extremely negatively (and investment in such areas by mainland enterprises is forbidden). Beijing specifically came out with guidelines last year that prohibits outbound investment in the gaming industry.”

RelatedPosts

MGM Cotai

Bill Hornbuckle: Macau promotional environment now locked in place despite rapid return of VIPs

Fri 5 Sep 2025 at 06:45
A New Macau

Macau GGR now seen hitting US$31.8 billion as Jefferies again upgrades 2025 revenue forecast

Fri 5 Sep 2025 at 05:40
Galaxy Macau signs four-year strategic partnership to bring UFC events to Galaxy Arena

Galaxy Macau signs four-year strategic partnership to bring UFC events to Galaxy Arena

Thu 4 Sep 2025 at 12:13
Ng Wai Han named as first ever female director of Macau’s gaming regulator

Staffing ratio of locals within Macau’s gaming industry in focus as DICJ promotes two more department heads from Labour Affairs Bureau

Wed 3 Sep 2025 at 14:26
Load More
Tags: GaminginvestorsLas Vegas Sandslicense renewalMacauMGM ResortsWynn Resorts
Share5Share
Newsdesk

Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

Current Issue

Editorial – Flipping the script

Editorial – Flipping the script

by Ben Blaschke
Thu 28 Aug 2025 at 12:30

This month represents an important milestone for Inside Asian Gaming as we launch IAG EXPO – an expansion of the...

Asia market roundup

Asia market roundup

by Ben Blaschke
Thu 28 Aug 2025 at 12:26

Inside Asian Gaming takes a deep dive into the state of Asia-Pacific’s key gaming markets: who’s hot, who’s not and...

Rewriting the rules

Rewriting the rules

by Newsdesk
Thu 28 Aug 2025 at 11:43

IAG EXPO, taking place at Newport World Resorts from 8 to 10 September, is not your usual trade show. IAG...

Test of character

Test of character

by Newsdesk
Thu 28 Aug 2025 at 11:28

Since its establishment in 1989, Gaming Laboratories International (GLI) has developed into the world’s most trusted name when it comes...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
NWR

Related Posts

Vietnam’s new Van Don integrated resort project scheduled for 2032 opening

Vietnam’s new Van Don integrated resort project scheduled for 2032 opening

by Ben Blaschke
Sat 6 Sep 2025 at 09:34

A new US$2 billion integrated resort to be built by Vietnamese development giant Sun Group in Van Don, Quang Ninh Province is planned to open in 2032, the company has informed Vietnam’s central government. The update, reported by local media...

IAG announces 19 sponsors of IAG EXPO’s Manila After Dark Official Welcome Event at Newport World Resorts on Monday 8 September

IAG announces 19 sponsors of IAG EXPO’s Manila After Dark Official Welcome Event at Newport World Resorts on Monday 8 September

by Newsdesk
Fri 5 Sep 2025 at 10:26

Inside Asian Gaming is delighted to announce a total of 19 sponsors for Manila After Dark (MAD) next Monday 8 September – the official welcome event for IAG EXPO, taking place at Manila’s Newport World Resorts. Running from 8 to 10 September,...

MGM Cotai

Bill Hornbuckle: Macau promotional environment now locked in place despite rapid return of VIPs

by Ben Blaschke
Fri 5 Sep 2025 at 06:45

Macau’s notoriously aggressive promotional environment has settled into a rhythm, according to MGM Resorts CEO and President Bill Hornbuckle – despite competition in the premium gaming segments rising as former junket players return to the city in swathes. Hornbuckle discussed...

AGEM Index up 14.4% in October on Aristocrat, Light & Wonder stock price gains

AGEM Index grows 5% in August as Konami, Aristocrat show strong stock performance

by Newsdesk
Fri 5 Sep 2025 at 05:56

The AGEM Index – a monthly stock performance guide comprising 10 global gaming suppliers – grew by 5.0% month-on-month or 93.66 points to 1,983.73 points in August, with Konami seeing the largest positive contribution. Konami had only last month been...

Your browser does not support the video tag.


IAG

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • English