The Macau government has revealed it will terminate the concession contract of the Macau Jockey Club (MJC), with effect from 1 April 2024.
Chief Executive Ho Iat-seng published the news in the Official Gazette this morning, stating that he has granted the Secretary for Economy and Finance, Lei Wai Nong, all the necessary powers to represent the SAR as the contracting party for the signing of an agreement with the MJC for the cancellation of the contract.
The current contract between the MJC and the Macau government was signed in 2018 and was due to run for a period of 24 years and six months, but at the same time setting out certain conditions including a requirement that the MJC would have to complete a capital injection of MOP$1.5 billion (US$186 million) on or before 31 December 2023. The MJC was also required to develop more diversified non-gaming elements as part of the project.
At a press conference held on Monday morning, the Secretary for Administration and Justice, Cheong Weng Chon, said, “The Macau Jockey Club proposed to the government to terminate the horse racing contract in 2023 due to operational difficulties and an inability to meet the needs of society. The government has conducted an in-depth study and accepted the Jockey Club’s opinion.”
According to government officials, the MJC has promised to handle the rights and interests of its staff in accordance with the law and to transfer all horses to mainland China by 31 March 2025. As per MJC’s concession, the venue and facilities of MJC will be handed over to the government without compensation.
Cheong also confirmed the government would not rekindle any horse racing activities in the future because the industry was in decline and it saw no long-term benefit, while no other gaming activities will be conducted on the original land either.
“The attraction of horse racing continues to diminish, with average race day attendance of 701 in 2021 falling to 492 in 2023,” he said.
“Annual attendance dropped from 38,000 in 2020 to only 29,000 in 2023.”
Despite termination of the MJC’s concession, DICJ director Adriano Marques Ho said the organization had fulfilled its contractual commitments and had not defaulted on the payment of taxes and fees to the government.
On the fate of MJC staff, the Director of the Macau Labor Affairs Bureau, Wong Chi Hong, said, “The Jockey Club has 254 local employees, and the company has promised to carry out the termination compensation in accordance with the law.
“The shareholders of the Jockey Club have also indicated that other companies [linked to] shareholders are willing to absorb the staff concerned and make career referrals for them.”
Representatives of the Municipal Affairs Bureau revealed the MJC currently has 289 horses under its control, all of which will need to be properly transferred to the mainland by 31 March 2025.
“The Municipal Affairs Bureau will discuss with the relevant mainland authorities the transfer of these horses, which will be used for equestrian purposes,” a representative said.
“The horses can also be transferred to other regions, and the government will provide assistance if the company applies for it.”
Cheong noted, however, that there will be penalties if the MJC fails to handle the transfer of horses properly.
Monday’s dramatic developments come after the MJC last year announced plans to reduce the amount of prize money it pays by 30% due to “below expectation betting turnover” in recent years. It was later forced to abandon the pay reduction when trainers and jockeys threatened to strike.
The MJC reported last June accumulated losses of MOP$2.1 billion (US$260 million) through 2022, representing an increase in losses of around MOP$200 million (US$25 million) over the previous 12 months.
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