According to an article in the publication Asia Gaming Brief, several sources confirmed that negotiations between gaming operators and the government have reached an impasse, as the Macau authorities changed their requirements regarding the investment plans of concessionaires.
According to a source close to several gaming operators, the government has required all gaming operators to submit detailed plans for each investment project, including solid evidence that their investment plans promote the four main industries central to the gaming strategy. Macao diversification government.
These industries include scientific and technological research and high-tech manufacturing, traditional Chinese medicine, cultural tourism, MICE, and modern finance.
A source told Asia Gaming Brief that gaming operators were taken aback by the detail required for each investment area, noting that “feedback from the government made it clear that the plans were not detailed enough”.
“The requirements are now not limited to the amount of investment and the content of activities, but also involve generating social benefits and promoting the development of Macau’s four main industries,” said the same source.
The Macao Gaming Inspection and Coordination Directorate (DICJ) is responsible for collecting all investment plans from each gaming operator and distributing the plan to different public services for evaluation.
For example, high technology projects will be evaluated by the Directorate of Economic and Technological Development Services, while cultural projects will be forwarded to the Cultural Institute.
As gaming operators have been made aware of the government’s requirements recently, previous proposals have already failed to meet official expectations.
The same source said the government has introduced Key Performance Indicators (KPIs) to monitor operators’ performance on their proposed investments.
Some gaming operators plan to dedicate areas on their properties to be exhibition spaces for high-tech products or services, while some investment plans will be realized by purchasing services or products from SMEs.
Following last year’s rebidding process, in which all six concessionaires submitted comprehensive investment proposals to secure new 10-year gaming concessions, Melco President and CEO Lawrence Ho recently revealed that the group was undergoing “extensive negotiations” with the government.
The same source explained that previous investment proposals were drawn up during COVID, a very different situation from Macau’s tourism recovery. Under these circumstances, gaming companies took the initiative to renegotiate with the government.
