It could be a time of new beginnings for Macau. On Sunday the unopposed Fernando Chui was voted into Macau’s top job by 282 of the 300 election committee members and will take control of the Chinese territory on 20 December. Today the six licensed gaming operators signed an agreement to establish an industry association to promote constructive competition.

Over the past months there has been some increasingly acrimonious posturing by operators, particularly from Las Vegas Sands’ Sheldon Adelson and SJM’s Stanley Ho. The creation of the Chamber of Macao Casino Gaming Concessionaires and Sub-concessionaires is intended to bring negotiation rather than dissension. Stanley Ho has been named as the first president of the organization.

The signing ceremony was attended by executives from all six operators - Las Vegas Sands Corp., Wynn Resorts Ltd., Melco Crown Entertainment Ltd., Galaxy Entertainment Group Ltd., MGM Grand Paradise Ltd. And SJM Holdings Ltd. Officials from the Macao Special Administrative Region (SAR) government were also there. Ho commented, "If our industry is suffering from destructive competition rather than constructive competition, then Macao will suffer."

The new body is likely to press the government to reduce gaming tax as the 35% revenue tax and additional contribution of 5% could make Macau’s casinos uncompetitive in the growing Asian gaming market. The Chamber must also resolve the ongoing battle of commission rates to junket operators bringing high rollers to Macau’s casinos. The government is drafting new rules for a commission rate cap that will bring financial penalties if broken. (E-07.28.09)

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