Macau’s casino industry has had great success over the last decade but for a couple of years when Beijing launched its anti-corruption crackdown. The biggest gambling hub in the world has dominated the global casino industry and generates a significant amount of revenue for Macau’s economy.
Macau has six major gaming operators who are licensed to operate. They operate a number of casinos in the region and have enjoyed the limited competition for a number of years. The licenses for these six gaming operators are set to expire in 2020 and 2022. Macau’s government has proposed a casino re-tendering process that is expected to dramatically transform Macau’s casino landscape going forward.
Casino Re-Tendering Process  
The casino re-tendering process is expected to happen in the next couple of years but there is a possibility that Macau’s Chief Executive will delay the re-tendering process for up to five years. The matter of casino policy during 2020 and afterwards is thus becoming more important since it will shape the future tourism environment in Macau. A specific focus will be on infusing the latest terms into the public realm for more debate and consensus-creation.
This process of re-tendering provides the Macau Government with a new opportunity to brand new policies and regulations based on the lessons learned during the last decade. The government can also put together a detailed visionary plan for the highly sought after Cotai Strip.
We must highlight the fact that this is not a typical casino renewal process but a casino re-tendering process. In other words, Macau’s six casino operators may no longer be the only players in the region as new casino operators could be encouraged to apply for a gaming license.
Casino Operators Will Have To Focus On Non-Gaming
The existing casino operators have built large resort structures and made commitments to big investments on the Cotai Strip and Macau Peninsula. They will thus re-tender while other new operators will certainly view this as a gigantic money-making opportunity. However, it is important to balance this within the growing Chinese Government feeling and hope for Macau to become more diverse outside of gaming.
While casino operators have focused exclusively on gaming and VIP gaming options in previous years, Macau’s regulator has place an emphasis on non-gaming activities over the last couple of years and encouraged casinos to diversify their operations. Macau’s government wants to transform the image of being a gambling hub to a family friendly destination.
New operators who would like to obtain a gaming license will have to keep this in mind and present a proposal that includes detailed non-gaming options.
Macau’s Casino Success Tied Into Beijing’s Policies
Macau’s casinos depend heavily on Chinese VIP gamblers from the Mainland as they generate more than 50 percent of gross gaming revenue. Macau’s reliance on Chinese visitors and gamblers with high net worth has meant the Chinese Government’s policy will keep affecting Macau. One example is the plummet of casino revenue from 2014 to 2015 as a result of China’s anti-corruption crackdown.
Gambling is banned in the Mainland and Beijing continues to keep a close watch on all gambling related activities in Macau. Macau will have to keep Beijing’s policies in mind as it look ahead to the casino re-structuring process and will also have to keep in mind the stiff competition that is emerging.
Japan Could Pose Serious Threat
Japan recently approved casino gambling and top casino operators in the world such as MGM Resorts and Las Vegas Sands Corp have committed to investing $10 billion each to develop an integrated resort. These integrated casino resorts in Japan are expected to pose a serious threat to Macau’s casino industry.
The Macau government will have to keep all of this mind when designing a new casino re-structuring process. If the new policies are done right, Macau will continue to be the top gambling hub in the world and generate massive revenue for the government. If done wrong, Macau could soon lose out to Japan and see a massive decline in gross gaming revenues.
Macau’s new Chief Executive is expected to take over on December 20, 2019 and it will be up to the Chief Executive to make a final decision on the casino re-structuring process.

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