Sands China says it will submit its bid for a new 10-year Macau gaming concession before 14 September, adding in its interim results announcement that it expects to be successful in securing the new gaming rights.
“Proposals must be submitted to the Tender Committee on or before September 14, 2022,” the company said over the weekend. “We are currently preparing our tender proposal and submission and continue to believe we will be successful in obtaining a new gaming concession when our current sub-concession expires.”
However, it noted, “It is possible the Macao government could further change or interpret the associated gaming laws in a manner that could negatively impact us.”
On 23 June, Sands China confirmed it had submitted an application to extend its gaming concession for six months until 31 December this year for a fee of MOP$47 million. It will also a bank guarantee of MOP$2.31 billion by 23 September to cover payment obligations to employees should it be unsuccessful in acquiring a new gaming license.
As per Macau’s gaming law, all gaming areas held by Macau’s concessionaires will also revert to the government upon expiry of the current concession and sub-concession period. The total casino and supporting areas held by Sands China and subject to reversion covers approximately 136,000 square meters.
The upcoming deadline for submission of tender documents comes amid Macau’s extended COVID-19 dilemma, with Sands China having recently entered into a term loan agreement with its parent company Las Vegas Sands for a US$1 billion term loan to help cover a new MOP$5 billion registered capital requirement to be imposed on all bidders.
The company this week announced a US$760 million loss for the first six months of 2022.
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