(Bloomberg) Macau has come up with a proposed law that will allow a maximum of six casinos to operate for a term of 10 years, redeemable for another 3 years.
The bill, which now awaits approval by the local legislature, also increases local ownership of the casino firms to 15% from the initial 10%.
The bill caps Casino firms’ public floats at 30%, with no required for government representation on the company boards. Officials say the cap aims to enhance supervision for a positive development of the industry.
Officials also say they will not adjust the taxes paid by casinos, with the current requirement imposing a 40% tax on gaming revenues.
The tightened oversight gives relief to the sector whose gaming licenses were nearing expiration in June.
Steven Leung, an analyst at Uob Kay Hian in Hong Kong, says the measures are reasonable and encourages casino investments for a good return.
The current licenses are now expected to last until the new law comes into place. Existing and potential operators will be subject to a tender process for new licenses once the law is implemented.
Casino stocks react. 1928: HKG is up +7.13%, 1128: HKG is up +4.63%, WYNN: NASDAQ is up +8.04%.
