• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 1 June 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
  • 中文
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
  • 中文
No Result
View All Result
IAG
No Result
View All Result

A view of Macau’s license re-tender: Concessionaires to respond to “inequality of rights” with widespread layoffs, pay cuts

Pierce Chan by Pierce Chan
Wed 3 Aug 2022 at 20:08
Executive Action

Macau’s Cotai Strip

65
SHARES
1.6k
VIEWS
Print Friendly, PDF & Email

The Macau government has launched a 48-day tender process for casino licences and the contents of the tender have been released to the public. These were reported by Inside Asian Gaming earlier this week, sparking discussion over whether the government is expecting too much from gaming companies in supporting Macau’s social development.

Lam Kai Kong, a 33-year veteran of Macau’s gaming industry and director of the Macau Junket Promoters Association, told IAG on Wednesday that the content of the tender was indicative of the “inequality of rights and obligations between concessionaires and the government.” But it could also result in an unintended consequence, with the government’s determination to push concessionaires to the limit likely to result in staff layoffs and pay cuts.

The tender document states that bidders must deliver 11 specific projects, as follows:

  1. Increase international tourism
  2. Develop MICE
  3. Develop entertainment
  4. Hold major sporting events
  5. Promote art and culture
  6. Develop health-based tourism
  7. Create themed amusements
  8. Promote Macau as a “City of Gastronomy”
  9. Develop community-based tourism
  10. Develop maritime tourism
  11. Others (including develop Macau as a “tech” center)

These 11 investment projects, all non-gaming, have caused some confusion. The call to “Develop health-based tourism”, for example includes a requirement for concessionaires to develop health-oriented tourism products and even mentions Chinese medicine for health and wellness.

It is undeniably strange that Chinese medicine would be seen as a responsibility of concessionaires rather than the government.

Lam Kai Kong

According to Lam, this proves that “the rights and obligations of concessionaires and the government have become very unequal.”

He said, “In the 80s and 90s, the gaming industry was monopolized by Stanley Ho Hung-sun, and the government of Portuguese Macau at the time required the gaming companies to take on social responsibilities, including the airport and Macau Tower. SJM made those investments but at that time, the gaming environment was relatively free and while the government required gaming companies to take on a lot of social responsibilities, it also allowed them to develop relatively freely.

“The environment is different now. There are now six concessionaires and they have to compete with each other, VIP rooms are no longer allowed to operate and satellite casinos are also not allowed to operate [in the manner they did previously].”

There is also the issue of China’s COVID-zero policy. While the Macau government is asking concessionaires to develop MICE and attract overseas visitors, there is no guarantee this COVID-zero policy will be wound back next year, or the one after, potentially creating an untenable scenario given the losses these operators have already accrued during the pandemic.

Lam commented, “Gaming companies are developing non-gaming elements, but the current approach to the epidemic policy is not allowing all developments to take place. The tender requires the development of many non-gaming elements but concessionaires have not been provided any compensation or assistance for all their losses. This is also a sign of inequality.”

Concessionaires may create new companies to sign contracts

In the face of continuous losses and without the ability to layoff staff, there is a view in the community that the six current concessionaires will embark on significant layoffs once they obtain their new gaming licences. In order to prevent this from happening, the Macau government has also included in the tender a provision to protect local staff.

However, now that the concessionaires are bidding for a new license, Lam says it is very likely that the entities they use to sign concession contracts with government will be newly created companies. As such, all staff would need to be re-hired by signing contracts with these new concessionaire companies.

Since the existing concessions will all expire on 31 December 2022, the government has already asked the concessionaires to set money aside to allow them to pay employees any severance pay or other entitlements due should they fail to win a new concession.

The unintended consequence of this is that, with severance money already set aside, the concessionaires might take the opportunity to use these funds for their intended purpose, then re-hire only the minimum number of employees it needs to operate under the current, more subdued business environment. This would also allow concessionaires to offer new employment contracts with lower salaries and fewer benefits.

Lam believes the most likely outcome of the six concessionaires signing a new gaming contract with the government will be widespread layoffs and pay cuts.

“The six concessionaires will sign a new contract with their existing employees after they have been granted the gaming licence, and there is a chance that the new concessionaire will then offer a lower salary contract. If the employees do not accept it, they will be told they are free leave their jobs,” Lam said.

RelatedPosts

Robert Goldstein to step aside as LVS Chairman and CEO from March 2026, replaced by Patrick Dumont

Robert Goldstein: Macau gaming market challenged by increased competition, online gambling and US-Sino trade war

Fri 30 May 2025 at 06:42
Macau’s hotel occupancy rate reaches 89% in July

Macau’s hotel occupancy rate climbed to 87.8% in April

Thu 29 May 2025 at 17:27
On the brink

On the brink

Thu 29 May 2025 at 13:27
Macau GGR rises 43.7% year-on-year to MOP$86.86 billion in 2021

Moody’s maintains investment-grade rating for Macau as fiscal reserves climb to US$77 billion

Thu 29 May 2025 at 05:23
Load More
Tags: concessionairesemployeesLam Kai Konglayoffslicense re-tenderingMacau
Share26Share5
Pierce Chan

Pierce Chan

With more than five years’ experience working as a journalist in Macau, Pierce is an experienced media operator with strong skills in news writing and editing. He previously worked with Exmoo, first as a reporter covering government, gaming and tourism-related stories, then as a Deputy Assignment Editor helping set the agenda of the day. Pierce is a graduate of the University of Macau.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

10 Years Ago – Reimagining Sri Lanka

Sri Lanka gazettes draft bill to establish Gambling Regulatory Authority

by Newsdesk
Sat 31 May 2025 at 06:03

A draft bill that would establish an official regulator for the Sri Lankan gaming industry, to be known as the Gambling Regulatory Authority, has taken another step forward after being gazetted. According to the Sri Lanka Mirror, the official announcement...

RGB International signs agreement to distribute KL Saberi and Atlas gaming machines

After record-breaking sales in 2024, Malaysia’s RGB sees 1Q25 profit fall to

by Newsdesk
Sat 31 May 2025 at 05:53

Malaysian gaming product distributor RGB International Bhd has reported group-wide revenue of MYR73.6 million (US$17.3 million) for the three months to 31 March 2025, down 65% year-on-year due to a lower number of products sold. The figure was also 79%...

Robert Goldstein to step aside as LVS Chairman and CEO from March 2026, replaced by Patrick Dumont

Robert Goldstein: Macau gaming market challenged by increased competition, online gambling and US-Sino trade war

by Ben Blaschke
Fri 30 May 2025 at 06:42

Las Vegas Sands (LVS) Chairman and CEO Robert Goldstein has bemoaned the lingering impact of the US-China trade war, as well as increased domestic and regional competition and the rise of online gambling across Asia for sustained flatness in the...

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

by Ben Blaschke
Fri 30 May 2025 at 05:38

Industry figures taking part in the Thai Entertainment Complex Roundtable (TECR) next Thursday 5 June hope to find common ground with those who oppose Thailand’s Entertainment Complex Bill, citing the opportunity to use an evidence-based approach to achieve outcomes that...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

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

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
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English