In Macau and a company linked to the boss of prominent Asian gambling operator Genting Malaysia Berhad has reportedly applied for one of the enclave’s coming ten-year casino licenses.
According to a report from Inside Asian Gaming, Macau is home to almost 40 casinos run by a sextuplet that encompasses MGM China Holdings Limited, Wynn Macau Limited, SJM Holdings Limited, Sands China Limited, Galaxy Entertainment Group Limited and Melco Resorts and Entertainment Limited. However, the source explained that these firms’ official concessions are set to expire at the end of December with every one having now submitted applications for new licenses that would potentially take their legitimacy up to the conclusion of 2033.
In a surprise move and a company called GMM Limited reportedly hit a Wednesday deadline to file a casino license application of its own in hopes of being given official permission to operate gambling in Macau. This enigmatic candidate is purportedly controlled by the Chairman and Chief Executive Officer for Genting Malaysia Berhad, Lim Kok Thay (pictured), and will now be hoping that a government selection panel green lights its tender in preference to one of the enclave’s existing operators.
Kuala Lumpur-listed Genting Malaysia Berhad is reportedly responsible for a worldwide estate of large casino resorts that include the 1,800-room Resorts World Sentosa property in Singapore alongside its home nation’s even larger Resorts World Genting development. The company is furthermore behind the gambling-friendly Newport World Resorts facility in the Philippines but will purportedly be facing off against Macau incumbents that together have locally invested more than $50 billion over the course of the past 20 years.
Inside Asian Gaming reported that little is known about the precise ownership structure of GMM Limited but the company lists Lim alongside Genting Malaysia Berhad’s President, Lee Chong Yan, and this firm’s Chief Financial Officer, Koh Poy Yong, as administrators. Despite this prestigious firepower and JP Morgan analysts Livy Lyu and DS Kim purportedly proclaimed that the recent bankruptcy of the parent operator’s Genting Hong Kong Limited cruise ship subordinate ‘may not bode well’ for the chances of the hopeful winning a Macau casino license.
Reportedly read an official filing from the JP Morgan pair…
“In short, we’d be surprised if any of the six incumbents lost the license for the next term.”
Vitaly Umansky from Asian brokerage firm Sanford C Bernstein Limited similarly told Forbes that the Macau move by GMM Limited is likely doomed to failure although the firm may well be setting itself up to take over should one of the six incumbents run into financial difficulties in the future or be unable to fulfil the terms of their license.
Umansky reportedly told Forbes…
“It’s probably positioning itself for the future in case one of the concessionaires pulls out or needs some financial assistance.”