In an expected move, the government of Macau has approved the extension of SJM Holdings and MGM China Holdings gaming concessions until June 26, 2022. This announcement came on March 15, and Macau said this was done to bring the operators in line with the city’s other operators, GGRAsia reports.
For the two-year extension, both SJM and MGM will pay MOP200 million (US$24.7 million) to the government. They will also have to join the city’s “Non-mandatory Central Provident Fund System,” and establish a labor creditor rights protection fund in the upcoming months.
Prior to this approval, the two operators were due to have their licenses expire in March 2020. The autonomous region wants to do “more in-depth studies” and possibly revise laws before having to consider longer extensions, and thus the two-year addition to their licenses.
According to the current laws, licenses holders can have a maximum of five years added to their license; however, once the license expires, they must seek a new international public tender to get a new license.