With the six incumbent Macau casino operators being given new 10Y licenses which will come into effect from 01 January 2023 to operate, Reuters notes that operators are expected to focus on non-gaming activities in the new term. It said that Beijing is keen for Macau to diversify away from gambling and attract foreign tourists with expectations that these operators are planning non-gaming investments of up to $15bn cumulatively over the next decade. The focus on non-gaming “will bring new players and tourists into the city, who in turn will spend sizable dollars on gambling”, said DS Kim, analyst at JPMorgan. Given the core focus historically has been on gaming, the strategy will be a new shift away from core operations. It is to be noted that prior attempts by Macau to diversify have been unsuccessful, with casino operators shying away from investing in non-gaming due to the high costs, as per Reuters.
Dollar bonds of Macau’s casino operators were trading flat.
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