HONG KONG : As casinos in Macau begin new licenses to operate in the world’s biggest gambling hub on Jan. 1, the stakes are high on whether they will be able to successfully deliver on a government mandate to diversify away from their cash-cow: gambling.
The recent easing of coronavirus restrictions in mainland China and Macau in December has also resulted in a wave of infections across the city, including many staff.Casinos have committed to investing a total of $15 billion in the coming decade, 90 per cent of which must be spent on non-gaming. “For the past 20 years, none of the operators have managed to establish any significant progress in non-gaming.”
Macau, a densely packed territory located on China’s southern coast, is the only place in the country where gambling in casinos is legal. New rules also stipulate that companies must routinely submit to the government the progress of their investment projects, the value of their investments and the execution period.
Macau has few direct flights from potential markets outside China, while transport within the city is limited to move large groups of people around, said David Green, head of Macau gaming consultancy Newpage.