Senior executives of Wynn Macau Ltd have expressed confidence in Macau’s looming license re-tendering process, suggesting the government is keen to ensure license stability to ward off growing regional competition.
The comments from Wynn Resorts CEO Matt Maddox and Wynn Macau President and Executive Director Ian Michael Coughlan were made during Wednesday’s 3Q21 earnings call in response to questions from analysts about the re-tendering process and proposed changes to Macau’s gaming law.
Like its fellow concessionaires, Wynn Macau has submitted its response to those proposed changes following a recent 45-day public consultation period, however Coughlan expressed his belief that the government is looking to shore up, rather than shake up, Macau’s hugely successful gaming industry model.
“We’ve been very impressed with the partnership orientation of the government with their pragmatism and also the progress that’s been made,” Coughlan said.
“It has been very transparent. They’ve allowed us to engage directly in person and also in writing. We’ve shared our concern (around certain amendments to the gaming law). We don’t have clarity on a number of the issues at this point, but we will look at clarity further along the way.
“All of the concessions have similar concerns and we believe the fact that we’ve aired them and shared them, they will be given very serious consideration by the government. Ultimately, we’re in partnership with government.
“They’re also very aware of the growing regional competition, particularly with Japan now kicking up, so there is a desire for stability going forward. And they understand that we’re businesses that needs to reinvest and continue to develop, so we feel a lot of support from the government. It’s a process, we’ll get more information further down the line, but we’re very confident that they have our best interests at heart.”
Among the gaming law amendments specifically referenced during the Wynn Resorts earnings call was a proposal to subject the distribution of dividends to government approval – a move designed to ensure sufficient profits are redirected to the benefit of Macau.
Maddox noted that “everyone is focused on that issue and the industry is fairly united,” but insisted he was comfortable with the direction the gaming law was headed.
“In one of the consultative hearings they talked about the need to balance the employment market and stability of Macau with returns for shareholders, which I think is perfectly logical and makes a lot of sense,” he said.
Asked for his thoughts on whether the re-tendering process would be completed by the time the licenses of Macau’s gaming concessionaire expire on 26 June 2022, Maddox replied, “What I can tell you is that when the government announced a consultative process, it was very structured at the beginning of the timeline. And when the meetings were scheduled, everything happened exactly as they had laid out.
“So we’re just very happy with how open it has been and how constructive it’s been. And I think that that is going to continue throughout 2022 as Macau really focuses on the long-term health and stability which they have continued to say about the industry and of the region.
“So I can’t give any specific dates or a timeline, but what I can tell you is we’re very confident in the process.”
