What is Concessionaire?
A concessionaire is a company granted an exclusive, time-limited right by a government to operate casino gaming in a jurisdiction, most notably used in Macau.
Macau's casino market is run by six concessionaires: SJM Resorts, Galaxy Casino, Venetian Macau (Sands China), MGM Grand Paradise, Melco Resorts Macau and Wynn Resorts Macau. Under a revised gaming law, all six were awarded new ten-year concessions running from 1 January 2023 to 31 December 2033.
The new concessions came with commitments to invest in non-gaming attractions and to expand overseas tourism, as well as tighter rules on junket operators and satellite casinos.
Other jurisdictions use concession models too, typically with a small number of licences tied to investment obligations. Macau caps the number of concessions by law, and the concessions require a minimum level of gaming revenue, with the government able to impose penalties if targets are missed. Gaming tax in Macau is charged on gross gaming revenue, at a combined effective rate of around 40%, and is a major source of public revenue for the territory.