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Last updated at: (Beijing Time) Saturday, February 09, 2002

Roundup: Monopoly Fading from Macao's Gambling Market

Macao, known as the "Oriental Monte Carlo," is set to take a big step forward this time as its gambling market will be shared by three concessionaires, putting an end of the monopolized business for decades by casino magnate Stanley Ho.
Francis Tam Pak Yuen, secretary for economy and finance of the SAR government, announced Friday that the list of winners in bidding for Macao's new casino licenses.


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Winner List of Bidding

According to Francis Tam Pak Yuen, secretary for economy and finance of the special administrative region (SAR) government, the list of winners in bidding for Macao's new casino licenses includes Stanley Ho's Macao Tourism and Amusement Company (STDM), Wynn Resorts (Macao) Limited, a U.S.-Macao joint venture, and Galaxy Casino Company Limited, a Hong Kong-Macao joint venture.

The three came out of 18 short listed companies.

Those ranking 4th to 6th are MP Entertainment Company Limited, a U.S.-Macao joint venture, MGM Mirage Macao, a U.S.-funded company, and Macao Star Limited, a Malaysia-Macao joint venture.

Bold Move of the Government

They will be substitutes for the provisional winners when "something unexpected" happens prior to a contract reached by the SAR government and the winners, Tam said.

Tam, who leads the Tender Committee for Gaming Concession, told the press that his committee made the final decision based on the bidders' experience and capacity, in line with a "fair, open and just" principle.

This is seen widely as a bold move of the government to optimize casino business, which contributes to roughly 30 percent of Macao's gross domestic product (GDP) and employs more than 10,000 local residents.

Gambling, "Dragon Head" of the Macao Economy

Tam insisted gambling should be the "dragon head" of the Macao economy, and added that the three winners, with their own advantages, are the best makeup to facilitate the city's future development in the middle and long term in a more balanced way.

  • Choice to Ensure Stability of Gambling Industry


    • "Our choice for the STDM is to ensure stability and development of Macao's gambling industry, since it has been operating casinos in Macao for a quite long period of time," the official said.

    "Big share-holders of the Wynn has successful experience in managing casinos, leisure-seeking and holiday-making business and exhibition business," he noted.

    "And the Galaxy is also a strong company," he said.

  • Negotiations to Be Hold


    • The SAR government plans to hold negotiations concerning the concession contract with the three provisional winners. Tam said his committee will meet with them individually, starting from February 18, with briefing on the investment plans of the future casinos scheduled after the first meeting.

    The Wynn and Galaxy are expected to open temporary casinos in six to nine months, according to the official.

    Gambling Industry in Macao

  • History of More than 150 Years


    • The gambling industry in Macao has a history of more than 150 years. As early as 1847, a decree was enacted for franchised gambling business in Macao.

    In 1937 the franchised system for gambling was introduced.

    In 1961 the then government publicly sought the concession for the gambling industry and in 1962 the STDM obtained it and has since operated this business up till now.

  • Opening of the Gambling Market


    • The SAR government proposed opening of the gambling market two years ago, posted rules on tenders in last October and accepted 21bidding papers in November, bringing in cut-throat competition among the bidders including those from world well-known casinos.

    Three bidders were refused on December 29 last year blamed for their poor bidding papers.

    The tender committee has been probing into the ability and offer of the bidders over the past several months, mooting over their papers and meeting with some of them, Tam said.

    The new Gaming Industrial Regime was passed by the Legislative Assembly in last August, stipulating that casinos should contribute to tourism and economic development and social stability in Macao, with tax making up 35 percent of their gross revenues and operators being qualified, honest and responsible for their doings.



    Macao SAR Government to Issue New Casino Licenses Soon

    A list of three winners in the bidding for new licenses of casinos in China's Macao Special Administrative Region (SAR) will come to light on the eve of the traditional Spring Festival.

    Consultancy work on all the 18 bidders has been completed in a smooth way.

    Macao Govt to Tighten Management of Gambling Industry

    The government of the Macao Special Administrative Region (SAR) will set up a special committee for more studies on the future development and management of gambling industry.

    The committee is to be chaired by the Chief Executive of the SAR, Edmund Ho Hau Wah, and members come from related departments of the SAR government.




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