Macau could launch gaming tender in days: JP Morgan
Macau has its administrative regulations published for a new gambling concession tender process in about half the time it took city authorities to prepare for the previous tender at the turn of the century, said a Tuesday memo from JP Morgan Securities (Asia Pacific) Ltd.
“We were surprised by how quickly the government came with the procurement scheme this time, just 14 days since the amendment to the Gambling Act came into effect, “versus more than a month in 2001 – despite ongoing Covid-19 checks”, regarding until a local outbreak of infection in the city, analysts DS Kim and Livy Lyu noted.The measure in question is known as Administrative Regulation No. 28/2022.
“In our view, this suggests the government’s eagerness to complete the renewal process within the year,” she added.
The brokerage found that the public tender for games of chance was opened in 2001 seven days after the announcement of the associated management regulations. That would put Macau on track to do the same by mid-July — and possibly as early as “next week.”
JP Morgan added that at the turn of the century, the public tender closed 42 days after the publication of the general criteria. That would put Macau in line this time, to complete the tender process “mid-to-late August,” the brokerage suggested.
In 2001, the “provisional winners” were announced at the beginning of February 2002, ie 105 days after the flagging out of the general criteria. That could put Macau on course for such an announcement in “late October, early November,” JP Morgan said.
At the turn of the century, the first concession contracts were signed at the end of March 2002, 153 days after the adoption of the administrative regulations. That suggested that in the final process, concession contracts could be signed in December this year, with the new 10-year concessions allowed to start in January 2023.
“We were and still believe that the six incumbents will be the next concession rights winners,” the analysts further noted.
The brokerage said that – of the broad criteria outlined in the board regulations so far – there have been some “notable changes” from 2001.
These include “plans to expand the resource market abroad, social responsibilities operators plan to take, and the level of benefits that operators’ planned investments in gaming and non-game projects can bring,” according to the report. the brokerage.