Macau extends SJM, MGM China gambling licenses to 2022Business | 15 Mar 2019 11:20 am
The Macau government says it has approved a request to extend the gaming concessions of SJM Holdings and MGM China Holdings to June 26, 2022. Such extension aligns the terms of these two gaming concessions with the other four operators in the Macau market, the licences of which are due to expire in 2022, CGR Asia reports.
The existing licenses of SJM Holdings and MGM China have an expiry date of March 2020. The government said it had approved a request for extension of the gaming concessions submitted by Sociedade de Jogos de Macau SA and MGM Grand Paradise SA, the Macau units of respectively SJM Holdings and MGM China that hold the gaming rights.
Each of the companies will have to pay 200 million Macau pataca (US$24.7 million) to the government by way of compensation, the government said in a press release today.
Article 13 of Law No. 16/2001 states that the term of a gaming concession should be set out in the concession contract – made respectively between each concessionaire and the Macau government – provided that the term does not exceed 20 years. It also states that if a concession is awarded for a period shorter than 20 years, the government may authorise an extension, provided it does not exceed the maximum term stated in the law.
In the case of SJM Holdings, their concession was granted for 18 years, giving leeway for the government to authorize one or more extensions up to the 20-year limit. MGM China – as a subconcessionaire – was bound to the same licence deadline.