• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 3 August 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

Genting in Macau … Why? How? (Part 1 of 2)

Andrew W Scott by Andrew W Scott
Mon 24 Oct 2022 at 04:11
Genting in Macau … Why? How? (Part 1 of 2)

Surprise Bid 7: (L to R) Macau lawyer Bruno Nunes, Mrs Chen and Fong Yee Wai lodge GMM's application on 14 Sep, sending journalists scrambling to figure out exactly who they all were.

232
SHARES
5.8k
VIEWS
Print Friendly, PDF & Email

Many IAG readers have asked for an in-depth analysis of Genting’s chances of being successful in their bid for a Macau casino concession and the implications for Macau of a Genting win. In this two-part article, to be published today and tomorrow, IAG conducts an in-depth examination of Genting’s bid.

At one minute to midnight — well ok, actually 14 minutes before the 5pm deadline on 14 September, but that doesn’t sound nearly as dramatic — an unexpected seventh bidder for a Macau casino concession emerged, upsetting the applecart for the incumbent sextet oligopoly. The site of the drama was the office of Macau’s gaming regulator, the Gaming Inspection and Coordination Bureau, known by its Portuguese acronym, the DICJ. The Big Six incumbents had lodged their bids at the DICJ office earlier that day, except for Wynn Macau which lodged the day before.

On the day of the lodging deadline – and the official opening of the tender documents two days later – the DICJ offices saw a veritable cavalcade of familiar faces, all snapped by the press, representing a cross-section of the most famous figures in the Macau casino gaming industry. There was Galaxy Deputy Chairman Francis Lui (with no less than President of the Macau Lawyers Association, Neto Valente, accompanying him), the trio of Ho siblings – Lawrence, Pansy and Daisy representing Melco, MGM and SJM respectively, along with SJM Resorts Managing Director Angela Leong and Secretary-General Rui Cunha, MGM President (Strategic) and CFO Kenny Feng and General Counsel Antonio Menano, Melco’s COO for Macau David Sisk, Wynn Macau Vice Chairman Linda Chen, Sands General Counsel Dylan Williams, and many more.

Mrs Chen appeared as a representative of GMM when the firm submitted its Macau concession bid in September.

But amongst this who’s who of Macau concessionaire senior leaders, like a mysterious stranger kicking up dust while riding into town in a western movie, a most unfamiliar sight – local Macau lawyer Bruno Nunes accompanied by a Mrs Chen and someone who subsequently turned out to be Fong Yee Wai, an employee of Yany Kwan Yan Chi. Kwan is, or at least was, a partner of Genting in the Treasure Island property being constructed opposite Casino Lisboa. The property had been touted as a potential future “Genting Macau,” although with the demise of holding entity Genting Hong Kong and the transfer of equity to Ao Mio Leong, this seems less likely now.

The Nunes, Chen and Fong trio were there to lodge an application for a Macau concession for a company named GMM Limited. The first thing out of the mouths of the assembled journalists was, “Who?”

The savvy immediately suspected Genting – it was the “G” in “GMM” that gave it away – and within minutes IAG’s journalist on the ground was searching the Macau company register and confirmed the suspicion. Presumably the twin Ms in GMM stand for Malaysia and Macau, in an as-yet-undetermined order.

Treasure Island Hotel Macau, located on the Macau peninsula, is part owned by Genting Hong Kong.

While the Macau media quickly answered the “Who?” question, no-one has delved deeply into the more meaningful questions of “Why?” and “How?” So, let’s do it!

Firstly, “Why?” There’s no need to repeat any of the countless column-inches that have been written about the near-apocalypse the Macau gaming industry has suffered since the outbreak of the pandemic nearly three years ago. Combined concessionaire debt is now estimated at a staggering US$24 billion – up from just US$5 billion in 2019 – and as a cohort the Big Six are losing between US$500 million and US$1 billion a quarter.

It’s understandable that the existing concessionaires, with their infrastructure currently in place and their properties arguably almost worthless if they lose the right to deal cards, are bidding for a continuation of their casino businesses. It’s the only way they have a shot at recouping the obscene losses they have accrued during the pandemic. But why on earth would Genting want to get involved in a such a … er … storm? (Omitting the impolite first syllable, which also begins with “s”.)

It may be unfinished business. Remember that Genting missed out last time around, 20 years ago. Also, Genting is always referred to as “the most global IR company in the world,” but with an obligatory qualifier, “but no Macau.” Both the unfinished business and the obligatory qualifier may well grate with Genting Chairman Tan Sri KT Lim, and he’s decided to do something about that.

Genting’s original Malaysian flagship, Resorts World Genting.

But the real reason may be more about commercial aspirations than merely finishing the unfinished or scrapping an unwanted tagline. After the past nearly three years of pain, it’s becoming easy to forget that Macau was once the absolute darling of the IR world. It was Macau in first place, and daylight second. Macau’s 2013 high-water mark GGR of US$45.1 billion for the year is a simply eye-watering number that no other single city market in the world has ever come anywhere near. Compare that to second place Las Vegas (the Strip, Downtown and North Las Vegas combined), which had an all-time record-breaking GGR for the fiscal year to June 2022 of US$9.3 billion. And that’s 2022 dollars, not 2013 dollars.

Most will say “but that was then, and this is now,” rightly pointing to the subsequent annihilation of Macau’s junket industry and mainland China’s now unrelenting and pernickety oversight of capital flows out of the mainland. But the market is still there. One thing remains just as true today as it was back in 2013 – there are over 100 million people in China’s richest province of Guangdong, a great deal of whom love to gamble. And most of them are just a short train, bus or car ride away from Macau – the only place in all of China where casino gaming is legal. If China’s central government ever backs off from its current policies which have been (intentionally or otherwise) hobbling Macau, that enormous addressable market has the potential to return.

Resorts World Sentosa in Singapore.

Genting is a company with a 57-year history. They have had their ups and downs over the decades. The “ups” have included the cash cow monopoly of Resorts World Genting up a mountain an hour’s drive north of Kuala Lumpur and their surprise victory in Singapore giving them entrée into the city-state’s lucrative duopoly market. The “downs” have included the recent pandemic-induced collapse of Genting Hong Kong, which imploded with some US$2.8 billion of debt, leading to the loss of both Genting’s holding in Resorts World Manila (now Newport World Resorts) and its Hong Kong cruise business, although the latter loss may be somewhat ameliorated by the phoenix-like launch of Resorts World Cruises in Singapore.

Through all this Genting has proven its ability to survive the march of time, and it’s this long-run thinking that may be the inspiration behind Genting’s bid in Macau.

Having examined the “Why?” of Genting’s bid, let’s move on to the “How?” How could Genting actually win their bid, thus wrestling a concession away from one of the incumbent sextet? And if they did, how would it be accretive to Macau as a whole? How would Genting, the losing concessionaire and the Macau government deal with the minefield that is reversion? How would Genting, in a very cash-strapped environment, finance a multibillion-dollar Macau casino gaming business, and its subsequent trading losses? Make no bones about it, they would be losing money from day one. These are all questions we will examine tomorrow.

The second and final part of this article will be published tomorrow before 8am Macau time.

RelatedPosts

Macau GGR up 19% year-on-year to MOP$22.1 billion in July, sets new post-pandemic record

Macau GGR up 19% year-on-year to MOP$22.1 billion in July, sets new post-pandemic record

Fri 1 Aug 2025 at 12:49
Melco’s long-stalled Countdown Hotel at City of Dreams to be converted into 150-key all-suite hotel

Melco’s long-stalled Countdown Hotel at City of Dreams to be converted into 150-key all-suite hotel

Fri 1 Aug 2025 at 06:45
Wynn Macau named Official Venue Partner for Asia’s 50 Best Restaurants 2022

Wynn Macau locks in US$1 billion increase to facilities agreement

Fri 1 Aug 2025 at 06:20
The changing face of Macau

Melco beats forecasts again in 2Q25 as Macau resorts drive 16% increase in gaming revenues to US$1.1 billion

Fri 1 Aug 2025 at 05:08
Load More
Tags: casino licenseconcessionairesGenting MalaysiaGMMMacaupublic tenderre-tendering
Share93Share16
Andrew W Scott

Andrew W Scott

Born in Australia, Andrew is a gaming industry expert and media publisher, commentator and journalist who moved to Hong Kong in 2005 and then Macau in 2009, when he founded O MEDIA, one of Macau’s largest media companies, former and parent company of Inside Asian Gaming (IAG). Both O MEDIA and IAG were merged with US-based gaming media brand CDC Gaming on 1 January 2025, under new corporate parent Complete Media Group (CMG).

Andrew was appointed CEO of Complete Media Group upon the merger. CMG is now the parent of three gaming media brands: Inside Asian Gaming (focusing on land-based gaming in the Asia-Pacific region), CDC Gaming (focusing on land-based gaming in the Americas), and Complete iGaming (focusing on online gaming in the Americas and APAC).

Andrew continues to be Vice Chairman and CEO of IAG and now-sister company O MEDIA.

Current Issue

Editorial – Better late than never

Editorial – Better late than never

by Ben Blaschke
Thu 31 Jul 2025 at 07:13

Inside Asian Gaming has in recent weeks been hearing increasing chatter around a possible move by Vietnamese authorities to introduce...

Angel’s Yasushi Shigeta

Angel’s Yasushi Shigeta

by Ben Blaschke
Thu 31 Jul 2025 at 07:08

Yasushi Shigeta, Chairman and owner of one of the world’s largest gaming industry suppliers, Angel Group, sits down with Inside...

The Magic Number

The Magic Number

by David Bonnet
Thu 31 Jul 2025 at 06:41

In this in-depth deep dive into the evolution of the Asian gaming landscape, David Bonnet argues that many regional jurisdictions...

Rashid Suliman – A road well traveled

Rashid Suliman – A road well traveled

by Ben Blaschke
Thu 31 Jul 2025 at 02:45

Rashid Suliman, Vice President of Global Gaming Asia-Pacific for casino solutions provider TransAct Technologies, provides some insight into his unique...

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

Related Posts

We’re Back!

Executive reshuffle sees RWS CEO Lee Shi Ruh named President and COO of parent company Genting Singapore

by Ben Blaschke
Sat 2 Aug 2025 at 15:26

Genting Singapore has announced the promotion of Ms Lee Shi Ruh, the recently appointed CEO of Resorts World Sentosa Pte Ltd, as its new President and Chief Operating Officer. Lee has until now served as Genting Singapore’s CFO. In a...

Star to open AU$3.6 billion Queen’s Wharf Brisbane development on 29 August

Star’s Hong Kong partners officially terminate Queen’s Wharf Brisbane acquisition deal

by Ben Blaschke
Fri 1 Aug 2025 at 13:02

Star Entertainment Group’s Hong Kong partners have officially closed the door on a deal that would have seen them acquire Star’s 50% stake in their AU$3.6 billion Queen’s Wharf Brisbane development. In a Friday release, Star confirmed that Chow Tai...

Macau GGR up 19% year-on-year to MOP$22.1 billion in July, sets new post-pandemic record

Macau GGR up 19% year-on-year to MOP$22.1 billion in July, sets new post-pandemic record

by Ben Blaschke
Fri 1 Aug 2025 at 12:49

Macau’s casinos recorded gross gaming revenue of MOP$22.13 billion (US$2.73 billion) in July, up 19.0% year-on-year and setting a new post-pandemic record, according to information from the Gaming Inspection and Coordination Bureau (DICJ). The month-on-month rise comes largely unexpected, with...

Melco’s long-stalled Countdown Hotel at City of Dreams to be converted into 150-key all-suite hotel

Melco’s long-stalled Countdown Hotel at City of Dreams to be converted into 150-key all-suite hotel

by Ben Blaschke
Fri 1 Aug 2025 at 06:45

Melco Resorts & Entertainment has revealed new plans for its long-stalled Countdown Hotel transformation project at City of Dreams Macau, with the tower to be rebranded and its existing 330 standard hotel rooms converted into 150 high-end suites. The renovation...

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
  • 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

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

  • 中文
  • English