Several messages, most of which are mixed, have been coming out of the city, Macau relating to its concession tender procedure, which is prophesized to be observed in 2022. Some contradictory sources indicate some of the industry insiders. Among them are some previous government officials who think that any discussion on the issue regarding the approval of casino license is virtually impossible around that year.
Macau is Expected by the Analyst
The government of Macau has shown a totally different attitude toward the question of concession. The government reflects high confidence and believes that there will not be any delay to issue that concession. Macquarie Capital’s analysts have given their opinion on the subject and indicate the possibility of an imminent extension. They believe the topic of license approval is a discussion that can be done at another time.
In the latest update that came forth this last Wednesday, Edward Engel, Aaron Lee, and Jordan Bender regarded Macquarie analysts asserted that a mass open to all tender is set for 2022, which might simply just roll over the already established concessions. However, an extension may come into force if the concession gets delayed.
In their explanation, these analysts said that when the officials of Macau were focused on the coronavirus and financial recovery, chances were increasing that present gaming licenses might get extended beyond the year 2022. They also said that policymakers are operating through a rigid and tight timeline. It’s because the Chief Executive of Macau has committed to approving the revamped gaming law around the fourth quarter of 2021. This little wind will just offer circa only six months for retendering their license.
If the existing approval gets renewed with only the least amount of discussion, all the licenses may enjoy a similar structure to the one they have now. The government of Macau and the gaming regulators are in the most favorable position right now and have supreme control over the situation. The gambling law of the city specifies all tenders will have the highest shelf life of only 20 years with a one five-year extension.