Three casino companies won the Macao Special Administrative
Region's bid for new casino licenses yesterday.
The winners include Stanley Ho's Macao Tourism and Amusement
Company (STDM), Wynn Resorts (Macao) Ltd, a US-Macao joint venture,
and Galaxy Casino Company Ltd, a Hong Kong-Macao joint venture.
The move puts an end to STDM's decades-long monopoly over the
gambling market, and is widely seen as a bold decision by the
government to upgrade the casino business and spur the economy in
Asia's "Monte Carlo."
For the past few months, 18 casino companies that made it to the
short list have undergone a fierce bidding process for the
licenses.
Companies ranked fourth to sixth - MP Entertainment Company Ltd, a
US-Macao joint venture; MGM Mirage Macao, a US-funded company; and
Macao Star Ltd, a Malaysia-Macao joint venture - were also
announced by Francis Tam Pak Yuen, secretary for economy and
finance for Macao SAR.
They will serve as substitutes for the top three companies if
something unexpected happens prior to finalization of
agreements.
Tam said his committee made the decision based on the bidders'
experience, adding that gambling will be the "dragon head" of the
Macao economy.
A
new Gaming Industrial Regime was passed by Macao's Legislative
Assembly last August, stipulating that casinos should contribute to
tourism and economic development and the social stability in Macao.
The assembly also stipulated that gaming taxation should be 35
percent of their gross revenue and casino operators should be
qualified, honest and responsible for their actions.
The move is meant to optimize the casino business and spur economic
growth by putting an end to the monopoly over the market that
gaming magnate Stanley Ho has held for decades.
The SAR government established the Tender Committee for Gaming
Concession in late October 2001. A week later SAR Chief Executive
Edmund Ho Hau Wah announced there would be no more than three
winners. Twenty-one bids were accepted and three were stricken due
to unqualified papers.
Gambling, a pillar sector in Macao, contributed nearly 30 percent
of the area's gross domestic product (GDP) in 2000. Some 10,000
Macao residents are employed by the gambling industry.
Casinos have a history of more than 150 years in Macao.
(Xinhua News
Agency February 9, 2002)