Macau’s six incumbent casino operators will be given new licenses to operate from January as GMM, backed by Genting’s Chairman Sri Lim Kok Thay missed out. The license application by Genting in September was seen as a surprise to many executives and would pose extra uncertainty for local operators. The latest update thus comes as a relief to existing operators who have already invested over $50bn in the region in the last 20 years. Had any of the incumbents lost, they would have had to return the casino area to the government for free at end-2022, a financially unviable options as gambling accounts for 80% to 90% of total revenue.

Dollar bonds of incumbents were higher by over 1 point – Wynn Macau’s 5.625% 2028s were up 1.1 points to 74.3, yielding 11.93%. Sands China’s 3.35% 2029s were up 2 points to 78.38, yielding 7.77%. Melco’s 5.75% 2028s were up 2.6 points to 73.56, yielding 12.4%. MGM’s 4.75% 2027s were up 1.4 points to 82.8, yielding 9.88%

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