GGRAsia – Macau casino ops detail annual ‘rent’ for gaming assets

Macau casino operators will each pay a fee of MOP750.00 (US$93.30) per square meter (10.8 square feet) of their gaming assets, i.e. casinos and gaming equipment, in 2023, their inaugural year. . New decade of concessionsDetails of the annual rents to be paid to the Macau government were revealed by Macau’s six casino concessionaires in their respective filings and press releases.

According to the document, the annual fee for the 2nd and 3rd years is based on the amount of MOP750.00, updated according to Macau’s Average Consumer Price Index (CPI).

In the fourth year, the usage fee will be increased to MOP2,500.00 per square meter and will be updated for subsequent years based on the previous year’s fee and adjusted for Macau’s average CPI.

Under Macau’s legal system, each concessionaire’s gaming assets were returned to the Macau government free of charge and without burden upon the termination of the previous concession on December 31st. A reverted game asset.

In a filing with the Hong Kong Stock Exchange, SJM Holdings Ltd said that SJM Resorts Ltd, the unit that currently owns Macau’s gaming concession, will pay the Macau government an annual rental fee of approximately MOP69 million in 2023. I will pay,’ he said. Adjusted for inflation for subsequent periods up to 2025.

“After 2026 (i.e. year 4), the annual usage fee will be adjusted to approximately MOP229.3 million.” This is subject to inflation adjustment from Year 5 through the end of the concession.

SJM Resorts will pay annual fees for the gaming facilities at Casino Grand Lisboa, Casino Grand Lisboa Palace, Casino Lisboa and Casino Oceanus at Jai-Alai.

According to a press release, Melco Resorts and Entertainment Ltd will pay approximately MOP57.9 million in the first year of the new concession based on MOP750.0 per square meter. Such amounts will be renewed on the same terms for the remainder of the contract. Annual membership fees are paid by Melco Resorts (Macau) Ltd for the operation of Altira Casino, City of Dreams Casino and Studio City Casino respectively.

Galaxy Entertainment Group Ltd, MGM China Holdings Ltd, Sands China Ltd and Wynn Macau Ltd also detailed the same terms in their filings regarding annual royalties paid to the Macau government for their respective gaming assets. However, these companies do not disclose annual payments or total square footage of gaming space in their applications.

Galaxy Entertainment Group operates casinos at Galaxy Macau, Starworld Hotel and Broadway.

MGM China operates casinos at MGM Macau properties and the MGM Cotai Complex on the Macau peninsula.

Sands China operates casinos at five properties: Sands Macau, The Venetian Macao, The Plaza Macao, The Parisian Macao and The Londoner Macao. The company said in its 2022 interim report released in August that the casino area and its support area to be returned to the Macau government totaled about 136,000 square meters. This means paying a usage fee of approximately MOP102 million for the first year of the session.

Wynn Macau Limited operates casino operations at the Wynn Macau venue on the Macau Peninsula and the Wynn Palace property on Cotai.