The following year and a half would be an interesting period in the history of Macau’s casino industry since two of its casino operators expect to have their licenses for operation expiring in 2020. Those are MGM China and SJM Holdings which have already made a move in this direction by applying for a renewal of their licensing and working on new projects which could secure them a spot among the operators to continue operation in the gambling hub.
When it comes to the upcoming years and development in Macau, the years 2020 and 2022 are going to be pivotal for the future of the gaming hub, since all operating companies in the industry which have casino venues open for business at the moment will see their casino licenses expire. The remaining four casino developers tot he liking of Sands China, Wynn Macau, Galaxy Entertainment, and Melco Resorts will have to renew their operation licensing in 2022.
Whether a casino developer receives further permit to operate in the field has the potential to make or break its business in Macau. These 20-year gaming licenses will have to be renewed, as they were issued back in 2002 after the end of the 40-year field monopoly of the gambling tycoon Stanley Ho. Now that his retirement is fact and Dr Ho officially stepped down from the casino operator he founded, SJM Holdings will have to take care of the entire process and ensure that its spot in the rapidly developing gambling hub is secure.
Casino License Renewal to be Expected in 2020
However, there is one detail which should also be taken into account. Since the renewal process should be fair for everyone involved in it, SJM Holdings would have to extend its license two years, in order to participate with the remaining operators in 2022. The company has not yet made an official request to Government of Macau but this is going to happen promptly. If the said gaming licenses are renewed for more than five years, they would also need a new legislation.
Grand Lisboa Palace is the integrated resort which is set to launch in 2019 and its presence in the field of Macau is expected to guarantee that SJM is going to witness a license renewal. As a result of the news that the King of Gambling has retired at 96 yesterday the shares of SJM Holdings witnessed a significant surge. There was an 11-percent jump in the trading of the publicly traded shares on the Hong Kong Stock Exchange.
One of the potential reasons for this improvement might be the fact that investors in the casino operator are content with the general direction which SJM is taking following its founder’s retirement. There might be a positive outcome for the otherwise complicated structure which has concerned experts in the field. According to the information previously issued by the management of the casino operator, the Chairman’s Office is going to consist of a total of four people.
Since Dr Ho insisted on heavily involving his children in the future of the developer, one of his daughters, Daisy Ho is going to become the new Chairman and Executive Director of SJM Holdings. In the meantime, Angela Leong, Dr Ho’s fourth wife will also receive a spot as Co-Chairwoman and Executive Director. There is also a post reserved for the third wife of the Godfather Ina Chan who is set to also become a director of the company. This situation could lead to a considerable power struggle in the long run.
