After an prolonged interval of betting operation decline, the 24-year concession granted by the Macau authorities to Macau Jockey Membership (MJC) in 2018 will now be terminated. As reported, the Authorities will terminate the concession as of 1 April 2024 and take over the venue and services of MJC with out compensation after the preliminary five-year interval of the concessionaire’s operations has incurred the lack of round $260 million.
24-Yr Concession:
As Inside Asian Gaming (IAG) experiences, the MJC has already assigned all the mandatory powers to governmental authorities of the Particular Administrative Area of Macau to finish the transaction. The termination reportedly comes after the MJC entered an settlement with the SAR authorities in 2018 for a interval of 24 years and 6 months. In line with IAG, the contract obliged the MJC to funnel round $186 million to the SAR after the preliminary five-year interval of the contract efficiency, however plainly the concessionaire going through working difficulties might not be probably to offer capital injections below the settlement.
Terminating Horse Racing Operations:
The Secretary for Administration and Justice, Cheong Weng Chon, reportedly defined: “The Macau Jockey Membership proposed to the federal government to terminate the horse racing contract in 2023 on account of operational difficulties and an lack of ability to satisfy the wants of society. The federal government has carried out an in-depth research and accepted the Jockey Membership’s opinion.”
As reported by IAG, Cheong additionally stated that the federal government wouldn’t proceed with any horse racing or different gaming operations on the unique land because it didn’t see any long-term profit from these. He reportedly stated:“The attraction of horse racing continues to decrease, with common race day attendance of 701 in 2021 falling to 492 in 2023. Annual attendance dropped from 38,000 in 2020 to solely 29,000 in 2023.”
$260 Million Loss:
Attendance decline impacted the scope of betting operations, with the MJC reporting gathered losses of US$260 million for the monetary yr ending on 30 June 2023. The determine additionally represented a $25 million loss improve over the previous 12 months, in keeping with the supply, subsequently not seeming more likely to meet the contractual deadlines. Nonetheless, the MJC will reportedly comply with the settlement with Macau authorities to switch all 289 horses to mainland China by the stipulated 31 March 2025 deadline. Any non-performance or default is reportedly topic to penalties.
Handing Over the Property:
The concessionaire may also hand over the property to the federal government with out compensation and deal with the rights and pursuits of its workers. The Director of the Macau Labor Affairs Bureau Wong Chi Hong, reportedly stated: “The Jockey Membership has 254 native workers, and the corporate has promised to hold out the termination compensation in accordance with the legislation. The shareholders of the Jockey Membership have additionally indicated that different corporations [linked to] shareholders are keen to soak up the workers involved and make profession referrals for them.”
As IAG experiences, DICJ director Adriano Marques Ho stated that the Macau Jockey Membership has fulfilled its cost and contribution obligations below the concession regardless of the termination pending impact from 1 April 2024.
