The Macau Government has extended SJM holdings and MJM China’s gaming licences for the next two years up to mid-2022. For investors this news has cast away all apprehensions that they had about the operation of the companies in Macau, often referred to as the “Mecca Of Gambling.”
The gaming concessions have been extended for four other companies as well which include Galaxy Entertainment, Sands China, Wynn Macau, and Melco. In a release later, the government said that the gambling concessions were extended to maintain “social stability and job security.”
The news of the extension gave the shares of popular casino companies operating in Macau an upward thrust. The shares of Melco International went up by 4.7 percent, Galaxy International shares picked up and rose by 4 percent, and Wynn Macau and Sands China shares stepped up by 3.3 percent and 2.3 percent respectively.
The SJM company is managed by Stanley Ho, who is credited with making Macau what it is today in the world of Gambling and Casinos. MGM China is a part of the MGM Resorts International, a US resorts and casino operator company. The MGM China is managed by Pansy Ho, daughter SJM chief Standley Ho.
The gaming licenses of the two companies for operations in Macau was valid only till 2020. While both the companies now have to pay an additional fee of 200m 200m patacas ($24.8m) for the extension, they can continue with their gambling operations until mid-2022. In their extension order provided for the two, the government of Macau also included better retirement and termination security for the casinos’ employees.
With the existing gaming license of the companies were to expire soon there was unrest amongst investors because of the uncertainty about the operations of the two companies in Macau. It should be noted that amongst the biggest 6 Casinos operational in Macau, 50% of them are partly or entirely owned by American companies.