(Sept 16): Macau accepted applications for casino licences from seven companies, giving them the right to move to the next stage of negotiations to operate in one of the world’s biggest gaming hubs.  

Macau will grant a maximum of six licences that take effect at the start of 2023 and will be valid for up to 10 years. An application from GMM Ltd, a company linked to Malaysian casino tycoon and Genting group Chairman Lim Kok Thay, has been conditionally accepted, the Macau government said in a statement on Friday (Sept 16). 

The other six companies already operate casinos in the territory. Anticipation over the shortlist, which may remove uncertainty from a relicensing process that has come amid a prolonged slump in gaming in Macau, drove casino stocks up in Friday trading. 

A Bloomberg Intelligence gauge of Macau casino stocks rallied as much as 6.3%, the biggest intraday jump since June 28. SJM Holdings Ltd and Sands China Ltd led the advance, climbing as much as 9.5% and 7.6% respectively. Still, the arrival of GMM has raised concern among the six incumbents that one of them could be forced out.

The candidates will enter discussions with Macau authorities on tender details, such as plans for developing non-gaming businesses and attracting non-Chinese visitors — key priorities for the government. The city is expected to announce the final group of winners before current licences expire at the end of the year. 

The relicensing is taking place against a backdrop of crisis for Macau, which has seen visitation and casino revenue tumble for over two years now due to China’s strict Covid-19 control rules. Beijing’s crackdown on high rolling bettors and capital flight has also wiped out the enclave’s once-dominant VIP sector. 

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