The Macau Jockey Club recently confirmed the 2023/24 racing season would go ahead, but with debts and expectation mounting, how long can it survive?
In July 2023, rumors began spreading that the Macau SAR Government would prohibit the importation of horses into Macau from August, and that a shipment of 30 horses bound for Macau from Australia would be unable to depart as scheduled.
In an interview with industry media outlet Asian Racing Report shortly afterwards, some trainers said they had not yet received the schedule for the 2023/24 racing season and were worried that Macau Jockey Club (MJC) would lose its concession to hold horse races in Macau.
Those fears appear to have been allayed for now, with MJC announcing on 8 September that the new season had been approved and was scheduled to run from 29 September 2023 to 31 August 2024, with night races resuming from January 2024 onwards.
Yet concerns remain, given the considerable list of promises MJC made around upgrades and enhancements to its facilities when handed a new 24-year concession in 2018, and in light of 18 consecutive years of financial losses. Does the Macau government really trust the MJC to make good?
In signing its new concession extension through until 31 August 2042, MJC promised to invest MOP$1.5 billion (US$186 million) into its facilities while also trying to pay off the MOP$150 million (US$18.6 million) it owed to the SAR Government as of April 2021.
If the MJC cannot meet the requirements of capital increase and repayment, the government has the right to terminate the concession immediately. The government also set a list of detailed requirements in respect of the MOP$1.5 billion investment. Parts of the investment projects had to be completed by 2021, including the renovation of the racing complex, replacement of computers, upgrading of the running track and more. MJC has publicly stated that these projects, or a part of them, have been completed within the deadline.
However, completing more complicated tasks due by 2024 and 2026 may prove difficult, and there has been little sign of significant progress. These projects include the construction of a public enclosure, F&B and retail outlets, the construction of facilities associated with a horse-themed park and a riding school, and works to link the LRT Jockey Club Station located at Estrada Governador Albano de Oliveira in order to have direct access to the Club’s hotels and racing facilities.
Johnson (a pseudonym), a person familiar with the operations of the MJC, told IAG, “It’s really strange that there is [little] information about the next season. Although I don’t think the MJC is going to close down, it’s clear that the government will not let [promises] go, like some of the large-scale projects. For example, connecting the LRT station opposite the Club directly to the public enclosure and the hotel area is showing no signs of being completed by the deadline of the end of next year.
“Introducing a horse-themed park, a horse riding school, or F&B and retail shops are all elements the government takes seriously.”
Johnson said he wouldn’t be surprised to see the government terminate MJC’s concession if it can’t meet all its commitments by 2026.
Asked about its progress by IAG, MJC replied, “As all departments are busy with the preparations for the opening of the new horse racing season, we will reply to the questions in this letter at a later date.”
According to information published in the Official Gazette, the MJC has reported accumulated losses of MOP$2.1 billion (US$260 million) through 2022, representing 18 years of consecutive losses.
IAG also spoke to an MJC employee who claimed the Club “has not increased its staff at betting branches post-pandemic. The epidemic greatly impacted the income of MJC due to the restriction on gatherings, and the amount of betting plunged.
“Many guests love the atmosphere when betting on horse races and see it as of great importance. If gamblers cannot make loud noises and discuss the live races in the betting branches, many lose their interest in betting, which is genuinely true among the older generation.”
The pandemic also made it impossible for high-end Hong Kong guests to come to Macau to bet. Before the pandemic, some Hong Kong enthusiasts would choose to become members of the MJC because the threshold for membership is considerably lower than at The Hong Kong Jockey Club.
“Some of the guests from Hong Kong who placed larger bets were members of the MJC, and the Club had shuttle pick-up services for them before the pandemic,” the staffer explained, adding that the ageing population of racing enthusiasts in Macau was another issue.
“It’s been very difficult for the MJC to bring in new blood, and it’s been relying on its regular customers.”
According to Macau’s Gaming Inspection and Coordination Bureau (DICJ), the betting turnover of MJC had been decreasing year-on-year before the outbreak of COVID-19, from MOP$306 million (US$38.0 million) in 2014 to MOP$98 million (US$12.2 million) in 2019.
“Horse racing in Macau is now facing a very similar situation to dog racing in Macau, which has gradually been phased out by the times,” the staffer said. “If the Jockey Club fails to attract new customers, it is only a matter of time before it bows out too.”
Live or die, the coming year’s racing season will be a decisive one for the Macau Jockey Club.
