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)
