Renowned Macau entrepreneur David Kam Fai Chow is positive the local gambling market can string out two or three more successful gaming franchises in the years to come if it is given the necessary authorization by the government.
Fai Chow, who is chief executive officer and co-chairman of Macau Legend Development Ltd., told GGRAsia on Monday the government should not only renew gambling licenses, but it should also consider issuing them to new businesses.
Current gambling licenses in Macau are set to be cashed in by 2020 and 2022.
A former member of Macau’s Legislative Assembly, Fai Chow believes that giving the go-ahead to such a move would greatly benefit the local people who don’t have many options to have a hand in the gaming industry.
Local Gambling Market
Macau, a sovereign Chinese territory where gaming and casino are legal, only has six gambling operators, which comprise more than 30 casinos.
Among the six gambling operators are SJM, Wynn Resorts (Macau) SA, Galaxy Casino SA, the Venetian, MGM Grand Paradise SA, and the Melco Crown Jogos (Macau) SA.
Aside from the gambling operators, it is also a home to some of the biggest casinos, including Galaxy Entertainment Group, Las Vegas Sands Corp., Melco Crown Resorts Corp., MGM China Holdings Ltd., Paradise Entertainment Ltd., SJM Holdings Ltd., and the Macau Legend Development Ltd., which is owned by Fai Chow.
With that in mind, Fai Chow places his confidence on giving local businesses a chance to run the show in large casinos to comply with his aim of involving the local people to generate more income.
The Rise of the Market
Gambling tourism in Macau has been constantly tossed around as one of the largest sources of revenue in the local economy.
According to Statista, throughout the period of 2007 to 2016, the gross revenue of gaming and gambling in the casinos in Macau has gone as far as U.S. $45.27 billion. In addition, most of its income has been primarily originating from games of chance, such as roulette, poker, and baccarat.
Just last year, the Las Vegas Review-Journal reported the gaming revenue alone reached its first gain since 2013 and went uphill by as much as 19 percent. This resulted in an incredible year total of $33 billion, as revealed by the Macau Gaming Inspection and Coordination Bureau.
In a January 2018 report by The Financial Times, the casino gambling in Macau has reached its peak, recording a 36.4 increase in revenue, which happens to be the highest increase since 2014.
Furthermore, the Gaming Inspection and Coordination Bureau concluded Galaxy Entertainment and Sands China have started the year on the right track, with the former increasing to 1.7 percent and the latter accumulating 1.2 percent.
Issuing License to Local operators
While the government has yet to give a green light to the operators in the area, things are looking up for the local gambling executives, with the most recent release of the license of three gaming franchises.
Not long ago, the government of Macau issued licenses to SJM Holdings Ltd., Galaxy, and Wynn Resorts to legally operate games of fortunes in its casinos before granting three other smaller franchises to do the same.
On the other hand, Success Universe Group Ltd. executive director and deputy chairman Hoffman Ma Ho Man suggests the government should implement a new policy in which gambling and gaming permits are given to the venues while dissolving the concession system at the same time.
However, the Macau government is still in doubt and has yet to decide on bulking up the market with new concessions.
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