TLDR Macau’s six casino operators pledged MOP$9 billion (US$1.1 billion) to a new government guidance fund. The fund starts with MOP$20 billion (US$2.5 billion), including MOP$11 billion from government reserves. Sands China’s Venetian Macau gave the most at about US$285 million, with Galaxy close behind at US$281 million. The money counts toward the operators’ non-gaming investment duties under their 10-year concessions. An analyst said the move is neutral for earnings but warned the money may be tied up for over 15 years.
Macau’s six casino operators have agreed to put MOP$9 billion (US$1.1 billion) into a new government fund. The fund aims to help the city grow industries beyond gambling and tourism.
The contributions will count toward the investment promises the operators made under their current 10-year gaming concessions.
Representatives signed agreements on Friday to become limited partners in the Macao SAR Government Guidance Fund No 2, Limited Partnership Fund. Chief Executive Sam Hou Fai and other senior officials attended the signing, which marked the official start of the fund.
How the Fund Will Work
The fund begins with MOP$20 billion (US$2.5 billion) in capital. Along with the operators’ money, the government is adding MOP$11 billion (US$1.4 billion) from its fiscal reserves.
The fund will invest in emerging industries, industrial upgrades and technology start-ups. It will also support turning scientific research into commercial products.
Projects tied to national strategic goals are included as well. So are efforts linked to Macau’s cooperation with Hengqin and growth across the Guangdong-Hong Kong-Macau Greater Bay Area.
The government says the goal is to draw public and private money into Macau’s long-term development. It also wants to widen the city’s economic base.
Sands and Galaxy Make the Largest Pledges
Stock exchange filings showed how much each company is putting in. Venetian Macau,