Shares of the likes of Las Vegas Sands Corp. were up significantly last week as the Macau gaming regulator on Friday announced welcomed news for existing properties.

According to the South China Morning Post, the government of the special administrative region of China will keep a cap on six casinos. However, licenses will be good for 10 years instead of 20, and an extension period for a license will be three years, down from five.

Per the report, it is the most significant reform for the gambling hub in 20 years. The intention is to continue the process of Macau diversifying its economy. It has been almost entirely based on casino gambling. It’s been a years-long process for Beijing.

“The changes were made ‘to promote the healthy development of Macau’s gaming industry, improve the regulation of the industry and to prevent the possible negative effects of gambling’, said Macau’s Secretary for Administration and Justice Cheong Weng-chon during a media briefing,” the report said of the announcement on Friday.

There was a public comment period that concluded in October, leading to the planned changes. A law putting the changes on the books will need to be passed.

 

 

 





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