HONG KONG ¨C As casinos in Macao begin new licenses to operate in the world¡¯s biggest gambling hub as of Jan. 1, the stakes are high on whether they will be able to successfully deliver on a government mandate to diversify away from their cash-cow: gambling.
For the past 20 years, Sands China, Wynn Macau , MGM China, Galaxy Entertainment, and SJM Holdings have raked in billions of dollars from their casinos in the Chinese special administrative region, turning the once sleepy fishing village into a glitzy boomtown.
But their 10-year, shortened contracts come at a time when COVID-19 restrictions have decimated Macao¡¯s gambling revenues, with 2022 the worst annual performance on record. Industry net debt is surging and operators face a new era of government oversight and control over their operations.
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