Macau casino firm sees $22 bln GGR boost in non-game spending

Macao’s six casino operators will have to increase their promised non-game investment by 20% over the next decade once the city’s total annual gaming revenue (GGR) reaches $180 billion ($23.39 billion) in MOPs. This is based on information released by each company through documents submitted to the Hong Kong Stock Exchange.

Under the new decade-long concession set to begin Jan. 1, Macau operators have pledged overall to spend a total of 108.7 billion on the government to explore non-game markets and overseas customer markets.

Information released over the weekend by six casino operators – Galaxy Entertainment Group, Melco International Development, MGM China Holdings, Sands China, SJM Holdings and WinMacau – would require each company to increase its investment in non-game projects by up to 20% next year.

When the Macau market reaches the $180 billion level of MOP by 2027, non-game spending growth should be at least 20%. 파칭코사이트인포

If the MOP 180 billion trigger is achieved only in 2028, the percentage that requires additional non-game investment is limited to 16%. If the MOP 180 billion trigger was achieved only in 2029, the additional investment would be 12%.

If the MOP 180 billion target is achieved only in 2032, the last year of the new concession, no additional non-game investment will be needed.

According to information released on the Hong Kong exchange, Galaxy Entertainment has committed to investing $28.35 billion in MOPs during the new 10-year concession period. The figure includes $27.45 billion in MOPs.

Melco Resorts has started investing 11.82 billion MOPs overall, of which 10 billion will be applied to non-game related projects.

For MGM China, the total committed investment over the next 10 years will be MOP 16.7 billion, of which MOP 1.5 billion will go to non-game projects.

Sands China has pledged a total investment of $30.24 billion in MOPs over the next 10 years, including 27.8 billion (approximately $3.5 billion) in MOPs for non-game projects.

For SJM Holdings, it has committed to invest a total of 14.03 billion MOPs during the new concession period. This includes 12 billion MOPs of non-game investment.

Wynn Macau has committed to investing 17.73 billion MOPs in the Macau market between 2023 and 2032. Of this amount, MOP 16.55 billion will be used for non-game projects.

Annual MOP 30 million fixed premiums

Each operator also confirmed that it would have to pay a fixed insurance premium of 30 million MOPs per year to the Macau government.

Each company also pays a variable annual premium, which is set according to the game inventory. This includes a premium of MOP 300,000 per VIP game table, a premium of MOP 150,000 per popular market game table, and a premium of MOP 1,000 per game machine, including slot machines.

The annual variable premium payable for each operator must not be less than 500 game tables and 1,000 game consoles.

Special insurance premiums will be paid if the annual game revenue generated from each game table and game console is less than HK$7 million (approximately HK$6.8 million) and HK$300,000 (approximately HK$291,000), respectively.

Operators will also be charged a special levy of up to 5% of the GGR, with a special game tax of 35%.

In line with the start of such new concessions, special levies may be reduced under the new game tax system, which will take effect on January 1. Such exemptions will only apply to GGRs generated by foreign customers, i.e. people outside mainland China, Macau, Hong Kong or Taiwan.

According to documents submitted to each Hong Kong exchange, Galaxy Entertainment will be able to operate 1,000 game tables and 1,700 game consoles scheduled to start on January 1.

The Macau government allocated 750 game tables and 2,100 electronic game consoles to Melco Resort. MGM China has been granted permission to operate a total of 750 game tables and 1,700 game consoles.

Sands China has received permission from the Macau government to operate 1,680 game tables and 3,700 game consoles under a new game permit scheduled to start on Jan. 1. SJM Holdings will be able to operate 1,250 game tables and 1,700 game consoles.

Win Macau has been approved to operate up to 570 game tables and 1,100 game consoles.