• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 12 July 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
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
No Result
View All Result
IAG
No Result
View All Result

JP Morgan: Combined US$12.5 billion operator investment under 10-year concession “very reasonable”

Ben Blaschke by Ben Blaschke
Mon 14 Nov 2022 at 12:58
Macau GGR falls 70.5% year-on-year in November to MOP$6.75 billion, slightly down versus October
27
SHARES
668
VIEWS
Print Friendly, PDF & Email

Investment bank JP Morgan has described a reported agreement by bidding parties to invest a combined MOP$100 billion (US$12.5 billion) into Macau over the 10 years of the new Macau concession period as “very reasonable”.

TDM Portuguese Radio reported over the weekend that the bidders had reached an agreement with the government that would see market share leaders Sands China and Galaxy Entertainment Group invest around MOP$20 billion (US$2.5 billion) each, should they win a new concession, and the remaining four concessionaires MOP$15 billion (US$1.9 billion) each. The report did not specifically state whether GMM S.A. – the one bidder not to currently hold a concession – had also agreed to the same capital commitment.

In a Monday note, JP Morgan analyst DS Kim described reports of this latest development as “probably better than what the market feared” and as “incrementally positive … supporting our view that the license renewal process will be smooth with no big negative surprises.”

Kim observed that “US$12.5 billion is only about a third of ~US$35 billion that the six operators have invested in the past 10 years.

“Granted, this is not an apples-to-apples comparison as there will no longer be any ‘mega casino’ projects. But construction costs have gone up considerably over the past decade and even a renovation project (e.g. Londoner renovation by Sands) now costs US$1.4 billion of hard capex.

“The average US$2 billion commitment per operator basically indicates one big renovation/redevelopment project plus some flagship events/shows over the next 10 years, in our view, which is something that operators would do even if there’s no mandatory investment requirement.”

According to Kim, the US$12.5 billion combined commitment would also cover OPEX (operating expense) elements of non-gaming projects and events, such as staff costs and IP rights.

As such, “Annual investment of US$1.25 billion for the industry doesn’t appear onerous at all, if we consider maintenance CAPEX alone was about US$700 million to US$800 million pre-COVID.

“US$1.25 billion also translates into only 5% of projected 2024 revenues (essentially mass + non-gaming), or ~13% of industry EBITDA.

“In short, this level of investments should be gladly accepted by six incumbents, in our view. The question, however, remains for Genting, which does not have any assets in Macau. This means it’ll have to acquire existing assets and commit to additional CAPEX if it receives the concession.

“We continue to expect all six incumbents to have their licenses renewed, while the only feasible scenario for Genting would be via equity investments or via a joint venture structure.”

RelatedPosts

Macau After Dark – MAD 30: Official Highlights Video

Macau After Dark – MAD 30: Official Highlights Video

Sat 12 Jul 2025 at 10:38
OPINION: Macau wants to recruit “foreign” customers? Great! Here are some ideas.

Air Macau suffers more losses, receives near US$300 million capital injection from shareholders

Sat 12 Jul 2025 at 10:36
Shareholder power play sees Tom Lau step down as director and Deputy Chairman of South Shore Holdings

MGTO says handover of THE 13 Hotel to new owner underway, renovation plans being reviewed

Sat 12 Jul 2025 at 10:15
Macau GGR hits new post-pandemic high of MOP$20.8 billion in October

Citi: Macau industry EBITDA likely to have grown by 3% in 2Q25

Thu 10 Jul 2025 at 05:46
Load More
Tags: concessionairesGMMinvestmentMacaupublic tender
Share11Share2
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

Macau After Dark – MAD 30: Official Highlights Video

Macau After Dark – MAD 30: Official Highlights Video

by Newsdesk
Sat 12 Jul 2025 at 10:38

Leading gaming industry media brand Inside Asian Gaming held its latest edition of Macau After Dark, MAD 30, at Vasco – Bar & Lounge at Artyzen Grand Lapa Macau on Monday 7 July. The event saw leading representatives of the...

OPINION: Macau wants to recruit “foreign” customers? Great! Here are some ideas.

Air Macau suffers more losses, receives near US$300 million capital injection from shareholders

by Pierce Chan
Sat 12 Jul 2025 at 10:36

Air Macau, currently the only airline with an operating license in Macau, is facing continuing losses and recently announced that it has received a capital injection of approximately MOP$2.4 billion (US$297 million) from its shareholders. This is the second capital...

Shareholder power play sees Tom Lau step down as director and Deputy Chairman of South Shore Holdings

MGTO says handover of THE 13 Hotel to new owner underway, renovation plans being reviewed

by Pierce Chan
Sat 12 Jul 2025 at 10:15

The Macao Government Tourism Office is currently reviewing plans for a comprehensive makeover of THE 13 Hotel as the property’s new owner prepares to take control. As reported by IAG, THE 13 was sold last month to family members of...

Casino Filipino venues to receive first delivery of almost 2,000 new slot machines by mid-September

PAGCOR orders immediate remove of all billboards, other out-of-home advertising by online gaming operators

by Ben Blaschke
Fri 11 Jul 2025 at 11:18

Philippine gaming regulator PAGCOR has issued an order for online gaming operators to immediately remove out door billboards and other gambling-related out-of-home (OOH) advertisements. The order, issued on 7 July according to a PAGCOR announcement, covers “all licensees, suppliers and...



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

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
  • 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.

  • English