The Second Standing Committee of Macau’s Legislative Assembly (AL) continued its discussions on the amendment of the gaming law on Thursday and had its first meeting with government representatives, including the Secretary for Economy and Finance, Lei Wai Nong.
Speaking with reporters afterwards, Chan Chak Mo, President of the Second Standing Committee, said the SAR government was confident it can finish the definition and classification of “satellite casinos” – one of the key issues being discussed by the AL since publication of proposed gaming law amendments in January.
“The government stated that they had investigated and inspected the scale of all properties of the six current gaming operators during July to November last year,” Chan said. “The government believed that they could complete the classification of which satellite casinos would be the properties of the government in accordance with architectural drawings by the end of this year.”
The draft of the gaming law amendment suggested that all satellite casinos must be housed within the properties of gaming operators.
However, Chan suggested there might be scope for operators to purchase a minority stake in a satellite casino via a strata arrangement of purchase of the gaming space only within those buildings that currently house satellite casinos.
Chan explained that should the gaming space occupy one-tenth of a building’s total floor space, for example, “gaming concessionaires would only need to acquire that gaming space.”
Chan said there were 22 satellite casinos in Macau, although there remains some confusion in this regard too given it has generally been understood that there are only 18 true satellite casinos in Macau – 14 of them under the licenses of SJM Resorts, three under Galaxy Entertainment Group and one under Melco Resorts & Entertainment. Among the additional properties that Chan is believed to be referring to is Studio City, of which Melco holds an indirect majority stake.
Melco Resorts Chairman and CEO Lawrence Ho was asked about the property, currently in the midst of a US$1.2 billion expansion, during this week’s 4Q21 earnings call but was emphatic in stating, “We’ve never looked at Studio City as a satellite casino considering Melco Resorts holds the majority of the ownership of Studio City, and we believe that the gaming law revision also doesn’t see Studio City as a satellite casino.
“Of course, the gaming law has so far been an expedited, fair and reasonable process, but we are still seeking a lot of clarification from the government before the law gets approved in the AL sometime in June, so we’ll be working with the government on that front.”
Whichever classification the AL settles on, the government will provide a three-year grace period for satellite casino operators to find a resolution with Chan confirming that this grace period would begin from the date the new gaming concessions begin.
As reported by IAG, Secretary Lei revealed on Thursday that the government plans to extend the six current gaming concessions and sub-concessions for six months until 31 December 2022.
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