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The Malaysian group's multiple non-gaming investments in China, including a prominent ski resort that was used for the Beijing 2022 Winter Olympics, are also likely to bolster its chances, analysts said.
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HONG KONG, Sept 30 (Reuters) - Malaysian group Genting has emerged as a strong contender to unseat an incumbent Macau casino operator for a new license, analysts and executives say, unleashing possibly the biggest shakeup in the world´s largest gambling hub in over two decades.
If one of the incumbents lost their license it's likely to send tremors throughout Macau´s gambling industry as the companies have collectively invested more than $50 billion in the past two decades, are tied closely to the economic fortunes of the former Portuguese colony and employ tens of thousands of people.
Only six slots will be available for the seven applicants, Macau´s government has said, as Genting Malaysia goes head-to-head with the six concessionaires Sands China, Wynn Macau, Galaxy Entertainment, MGM China , Melco Resorts and SJM Holdings as their concessions expire at year-end.
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If an incumbent loses their license, they must return the casino area to the government for free at the end of this year, making it financially unviable to operate the remaining facilities as gambling accounts for 80-90% of total revenue.
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Genting "can offer the Macau government whatever they expressly said they wanted," versus the incumbents who have predominantly focused on Chinese VIPs, said Samuel Yin Shao Yang, an analyst at Maybank. Around 90% of Macau´s visitation comes from greater China.
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Genting, which has a 40% stake in developing a Macau hotel, could displace or enter into a joint venture with one of the financially weaker players such as SJM, some analysts said. However it is unclear how this would work, including how Genting would manage unfamiliar resorts and staff.
It would cause "far too much disruption" if any of the six operators were replaced, said Terry Ng, an analyst at Daiwa in Hong Kong, although other industry watchers note the incumbents have left themselves vulnerable to an operator like Genting which lost out on a Macau licence in 2002.
