Below is a summary of significant terms and conditions under the concession contracts signed on Friday 16 December 2022, as understood by IAG.
(Note exchange rate US$1 = MOP$8)
Contract terms and conditions common to all concessionaires
- Term
- Concession term: 1 January 2023 to 31 December 2032
- Early concession termination
- By mutual agreement
- By breach of obligations by concessionaire
- By public interest reason(s)
- By threat to national security
- By lack of concessionaire suitability
- At government’s option with one year’s notice from the eighth year of concession (with all legal rights and obligations accrued to the concessionaire before the date of redemption notice assumed by the Macau SAR government, and reasonable and fair compensation to the concessionaire)
- Operations
- Operating hours
- Must operate 24/7, every day of the year
- Operations may cease at the instruction or with the authorization of the Chief Executive
- Gaming promoters (junkets): concessionaire is responsible for activities in the casinos of promoters registered with it and administrators, key employees and collaborators of promoters, and must supervise their activities
- Marketing and promotion
- Concessionaires must carry out advertising and marketing campaigns in Macau and abroad
- Concessionaires must cooperate with the government to undertake publicity and marketing actions and campaigns to promote Macau abroad
- Complaints
- Concessionaires must maintain a complaints book (paper and/or electronic) so visitors may lodge complaints about games of chance
- All complaints must be sent to the government within 48 hours
- Concessionaires must visibly post a notice in casinos regarding the existence of a complaints book
- Operating hours
- Payments due
- Special gaming tax
- Normal: 35% of gross gaming revenue
- Special premium: if GGR does not reach minimum MOP$7 million per table and MOP$300,000 per gaming machine, 35% of the GGR shortfall (these minimums reviewable annually by Chief Executive and at any time if economic conditions justify)
- Contributions
- To Macao Foundation or similar: 2% of GGR
- To urban development, tourism promotion and social security fund: 3% of GGR
- Contributions may be waived or reduced on GGR from foreign players or under abnormal, unpredictable or force majeure circumstances
- Annual premiums
-
- Fixed: MOP$30 million
-
- VIP tables (reserved for certain player types): MOP$300,000 per table
- Other tables (not so reserved): MOP$150,000 per table
- Gaming machines: MOP$1,000 per machine
- Minimum amount: 500 tables and 1,000 machines
-
- Utilization fee
- Annual amount for use of casino space which reverted to the Macau government on 31 December 2022 at the end of the prior concession period (amounts to be determined by Macau government at the end of December 2022)
- Special gaming tax
- Investment commitments
- If Macau annual GGR reaches MOP$180 billion, additional non-gaming investment (as a percentage of initial non-gaming investment):
- If in years 1 to 5 (2023 through 2027): 20%
- If in year 6 (2028): 16%
- If in year 7 (2029): 12%
- If in year 8 (2030): 8%
- If in year 9 (2031): 4%
- If in year 10 (2032): 0%
- Non-gaming investment commitment projects to include
- Expansion of foreign feeder markets
- MICE
- Entertainment
- Sports events
- Art and culture
- Health tourism
- Themed attractions
- Gastronomy
- Community tourism
- Maritime tourism
- Others
- Each year concessionaire must submit to the government:
- a summary of the progress of the investment projects
- the projects that will be carried out in the following year
- the value of its investment and the execution period
- If Macau annual GGR reaches MOP$180 billion, additional non-gaming investment (as a percentage of initial non-gaming investment):
- Concessionaire entity
- Minimum paid share capital: MOP$5 billion
- Minimum net assets: MOP$5 billion
- Prohibited from listing on a stock exchange
- Managing Director
- Qualification: must be a Macau permanent resident
- Minimum holding of share capital of concessionaire entity: 15%
- Bank guarantee to SAR for obligations (particularly labor)
- Amount: MOP$1 billion
- Period: until 180 days after concession ends
- Reversion: At concession end, casino premises and gaming equipment reverts to Macau SAR without compensation
- Macau government approval required for
- Expansion of business scope
- Issuance of shares
- Transfer or creation of any share encumbrances
- Change of Managing Director (or the authority delegated thereto)
- Change of Articles of Association
- Transfer of property and credit rights exceeding MOP$100 million
- Entering into a loan exceeding MOP$100 million
- Granting of a loan to any of its directors, shareholders or key employees
- Required to notify the Chief Executive minimum 5 working days before
- Issue of debt securities
- Transfer of funds within concessionaire exceeding 50% of concessionaire entity share capital
- Financial decisions relating to certain salaries or benefits exceeding 10% of concessionaire entity share capital
- Any financial decisions exceeding 10% of concessionaire entity share capital
- Required to notify Macau government before:
- Assuming any loan, mortgage, obligation, guarantee or assumption of any debt exceeding MOP$16 million
- Granting a loan to any third party exceeding MOP$60 million
Contract terms and conditions specific to individual concessionaires
Galaxy
- Contracting entity: Galaxy Casino S.A.
- Gaming table allocation: 1,000 (of 6,000 across Macau)
- Gaming machines allocation: 1,700 (of 12,000 across Macau)
- Authorised locations: StarWorld, Galaxy Macau, Broadway
- Authorised satellites: Waldo
- Total investment commitment: MOP$28.35 billion
- Gaming component: MOP$0.9 billion
- Non-gaming component: MOP$27.45 billion
Melco
- Contracting entity: Melco Resorts Macau S.A.
- Gaming table allocation: 750 (of 6,000 across Macau)
- Gaming machines allocation: 2,100 (of 12,000 across Macau)
- Authorised locations: Altira, City of Dreams, Studio City
- Authorised satellites: Grand Dragon Casino
- Authorised slot clubs: Mocha Golden Dragon, Mocha Grand Dragon, Mocha Royal, Mocha Sintra, Mocha Kuong Fat, Mocha Porto Interior
- Total investment commitment: MOP$11.8237 billion
- Gaming component: MOP$1.8157 billion
- Non-gaming component: MOP$10.008 billion
MGM
- Contracting entity: MGM Grand Paradise S.A.
- Gaming table allocation: 750 (of 6,000 across Macau)
- Gaming machines allocation: 1,700 (of 12,000 across Macau)
- Authorised locations: MGM Macau, MGM Cotai
- Authorised satellites: none
- Total investment commitment: MOP$16.7 billion
- Gaming component: MOP$1.7 billion
- Non-gaming component: MOP$15 billion
Sands
- Contracting entity: Venetian Macau S.A.
- Gaming table allocation: 1,680 (of 6,000 across Macau)
- Gaming machines allocation: 3,700 (of 12,000 across Macau)
- Authorised locations: Sands Macao, Venetian, Plaza, Londoner, Parisian
- Authorised satellites: none
- Total investment commitment: MOP$30.239 billion
- Gaming component: MOP$2.439 billion
- Non-gaming component: MOP$27.8 billion
SJM
- Contracting entity: SJM Resorts S.A.
- Gaming table allocation: 1,250 (of 6,000 across Macau)
- Gaming machines allocation: 1,700 (of 12,000 across Macau)
- Authorised locations: Lisboa, Grand Lisboa, Grand Lisboa Palace, Oceanus
- Authorised satellites: Landmark, Grandview, KamPek, Casa Real, Fortuna, Emporer, Ponte 16, L’Arc, Legend Palace
- Total investment commitment: MOP$14.033 billion
- Gaming component: MOP$2.033 billion
- Non-gaming component: MOP$12 billion
Wynn
- Contracting entity: Wynn Resorts (Macau) S.A.
- Gaming table allocation: 570 (of 6,000 across Macau)
- Gaming machines allocation: 1,100 (of 12,000 across Macau)
- Authorised locations: Wynn Macau, Wynn Palace
- Authorised satellites: none
- Total investment commitment: MOP$17.73 billion
- Gaming component: MOP$1.23 billion
- Non-gaming component: MOP$16.5 billion
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