International edition
June 17, 2021

To date, most of the six operators completed their projects accordingly

Casinos invest more than expected in Macau

(Macau).- All casino operators’ investments have exceed the initial amounts set up in their contracts with the Macau Government, according to the 2010 report of the Legislative Assembly (AL) Provisional Committee for the Analysis of Land and Public Concessions.

To date, most of the six operators completed their projects accordingly, and the invested amounts were much higher than those established by the contracts,” the report stated.

Sociedade de Jogos de Macau (SJM) has allotted us$ 1 billion in its three projects Grand Lisboa, Ponte 16 and Fisherman’s Wharf instead of the us$ 528.3 million initially planned. Sands China’s investment in Sands hotel-casino and The Venetian Macau exceeded the initial amount of us$ 540.6 million to reach us$ 3 billion, according to the report.

Instead of us$ 491.5 million, Steve Wynn increased investment in Wynn and Encore Hotel projects to us$ 1.4 billion, whereas Melco Crown paid us$ 2.7 billion for both Altira Macau and City of Dreams, instead of the us$ 491.5 million originally planned.

MGM’s development cost was initially planned at us$ 491.5 million, but it soared to us$ 884.7 million. Finally, the two projects of Galaxy Entertainment Group, of which Galaxy Resort Cotai is expected to open doors early next year, increased its investment amount from us$ 540.6 million to 8.9 billion, the report shows.

Even though the operators have kept their promises in terms of investment, the AL committee urged the Government to provide more detailed information about these projects. “The committee is not familiar with the details of the contracts between the Government and the operators and therefore cannot assess what was the percentage of the total investment amounts used in leisure facilities,” the lawmakers wrote in the report.

It continues: “The committee believes that there is a need to monitor the various projects, including the actual amounts involved, and considers that the Government should encourage enterprises to develop different nature initiatives.”

The report was brought to public attention by local Portuguese language daily Ponto Final. In general, the committee demanded more collaboration from the Government, in order to “create the necessary conditions to carry out a more productive debate and to monitor on issues related to land granting and public works.”

Meanwhile, the report sets the agenda for the next legislature, which kicks off on October 16. In first place, the committee will start to scrutinise the plans for the different plots in Cotai, followed by the idle land that was previously granted. The case of promised plots, which were not yet officially granted, and the government’s obligations when it takes back any piece of land will also be analysed by the committee.

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