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Melco Announces Further Details of Gaming Concession

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Melco Resorts & Entertainment Limited, a developer, owner and operator of integrated resort facilities in Asia and Europe, announces further details of the ten-year concession to operate games of fortune and chance in casinos in Macau (“Concession”) granted to Melco Resorts (Macau) Limited (“Melco Resorts Macau” or “Concessionaire”), a subsidiary of the Company, as announced on December 16, 2022.

The Concession is granted by the Macau Special Administrative Region of the People’s Republic of China (“Macau SAR”) to Melco Resorts Macau as the Concessionaire. The term of the Concession commences on January 1, 2023 and ends on December 31, 2032. Under the Concession, Melco Resorts Macau is authorised to operate the Altira Casino, the City of Dreams Casino and the Studio City Casino as well as the Grand Dragon Casino and the Mocha Clubs. The Macau SAR government has allocated 750 gaming tables and 2,100 electronic gaming machines for operation by the Concessionaire during the Concession.

Under the Concession, Melco Resorts Macau will pay an annual premium to the Macau SAR of MOP30,000,000 (equivalent to approximately US$3,741,000) plus a variable amount calculated in accordance with the number of gaming tables and electronic gaming machines operated by Melco Resorts Macau. The variable amount of the annual premium is MOP300,000 (equivalent to approximately US$37,000) for each gaming table reserved exclusively to certain kinds of games or players, MOP150,000 (equivalent to approximately US$19,000) for each gaming table not so exclusively reserved and MOP1,000 (equivalent to approximately US$100) for each electronic gaming machine, subject to a minimum annual payment of an amount required for the operation of 500 gaming tables and 1,000 electronic gaming machines. The Concession provides for the payment of special gaming tax on gross gaming revenue. Special gaming tax is currently payable at a rate of 35%. Contributions of 2% and 3% of gross gaming revenue is payable by the Concessionaire to a public fund, and to urban development, touristic promotion and social security, respectively. These contributions may be waived or reduced with respect to gross gaming revenue generated by foreign patrons under certain circumstances. In addition, a special premium may be due by the Concessionaire in the event the average gross gaming revenue of the Concessionaire’s gaming tables does not reach the annual minimum of MOP7,000,000 (equivalent to approximately US$873,000) and the average gross gaming revenue of the electronic gaming machines does not reach the annual minimum of MOP300,000 (equivalent to approximately US$37,000). The amount of the special premium is equivalent to the difference between the amount of the special gaming tax paid by the Concessionaire and the amount that would be paid under the annual minimum set average gross gaming revenue for gaming tables and electronic gaming machines.

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Under the Concession, the registered share capital and net asset value of Melco Resorts Macau cannot be less than MOP5,000,000,000 (equivalent to approximately US$623,538,000) and, to guarantee its performance of certain of its legal and contractual obligations, including labor obligations, Melco Resorts Macau must maintain a guarantee issued by a Macau SAR bank in favor of the Macau SAR in the amount of MOP1,000,000,000 (equivalent to approximately US$124,708,000) until 180 days after the earlier of the expiration and termination of the Concession. The Concession requires that the managing director of Melco Resorts Macau must be a permanent resident of the Macau SAR and must hold at least 15% of the registered share capital of Melco Resorts Macau. Melco Resorts Macau is compliant with these requirements.

In connection with the Concession, Melco Resorts Macau has undertaken to carry out investment in the overall amount of MOP11,823,700,000 (equivalent to approximately US$1,474,506,000). The investment plan can include gaming and non-gaming related projects in the expansion of foreign market patrons, conventions and exhibitions, entertainment shows, sports events, art and culture, health and well-being, thematic entertainment, gastronomy, community and maritime tourism and others. Of the total investment amount referred to above, MOP10,008,000,000 (equivalent to approximately US$1,248,074,000) will be applied to non-gaming related projects, with the balance applied to gaming related projects.

The Concessionaire has undertaken to carry out incremental additional non-gaming  investment in the amount of approximately 20% of its initial non-gaming investment, or MOP2,003,000,000 (equivalent to approximately US$249,789,000), in the event the Macau SAR annual gross gaming revenue reaches MOP180,000,000,000 (equivalent to approximately US$22,447,372,000) (“Incremental Investment Trigger”). This incremental investment amount is reduced to 16%, 12%, 8%, 4% of the initial non-gaming investment amount or nil, if the Incremental Investment Trigger occurs in year 6, year 7, year 8, year 9 or year 10 of the Concession, respectively.

Transfers of property and credit rights of Melco Resorts Macau exceeding MOP100,000,000 (equivalent to approximately US$12,471,000) and loan agreements or similar arrangements executed by Melco Resorts Macau as borrower or creditor equal to or exceeding that amount are each subject to approval by the Macau SAR government, except for those loan agreements related to credit granted for gaming purposes. The issue of debt securities by Melco Resorts Macau is also subject to approval by the Macau SAR government and the Concession prohibits the Concessionaire from being listed on a stock exchange. The Concession requires that prior notice be given to the Macau SAR government of financial decisions relating to the internal movement of funds of Melco Resorts Macau exceeding 50% of its registered capital, financial decisions relating to salaries, remuneration or benefits of employees, among others, exceeding 10% of its registered capital and other financial decisions exceeding 10% of its registered capital.

The Concession may be terminated by the Macau SAR government by mutual agreement with the Concessionaire, for breach of obligations by the Concessionaire, for reasons of public interest, by reason of threat to national security, or for lack of suitability of the Concessionaire. In addition, the Macau SAR government may, from the eighth year of the Concession, redeem the Concession by notice to the Concessionaire at least one year in advance. Pursuant to such redemption, the Macau SAR government would assume all rights and obligations of the Concessionaire resulting from business legally and validly conducted by the Concessionaire before the date of the redemption notice and the Concessionaire would have a right to obtain reasonable and fair compensation under applicable Macau SAR law.

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The Concession provides for Melco Resorts Macau’s right to use the casino premises and related land for the purpose of operating games of chance under the Concession during the term of the Concession. On the termination or expiry of the Concession, the casino premises operated under the Concession and the gaming equipment would automatically revert to the Macau SAR without compensation.

The Company enthusiastically welcomes the grant of the Concession to Melco Resorts Macau, which will enable Melco Resorts Macau to continue its core gaming and entertainment business in the Macau SAR for the next decade.

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Asia

SCCG Announces Strategic Partnership with Gridlogic

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SCCG Management, a premier advisory firm in the gaming industry with a global footprint and over 100 best-in-class client partners, announced a strategic partnership with Gridlogic, a leading Real Money Technology group and a pioneer in the iGaming industry. This partnership is set to enhance SCCG’s initiatives in the rapidly growing Indian gaming market, leveraging Gridlogic’s innovative technology solutions and artificial intelligence capabilities for player protection.

With Gridlogic’s reputation as one of India’s fastest-growing gaming technology companies, this collaboration marks a significant milestone in SCCG’s efforts to expand its global market entry and distribution of gaming products and platforms. Gridlogic, known for its next-generation technology and artificial intelligence applied to skill gaming, brings to the table a wealth of expertise and a robust portfolio of technology services that include gaming, data management and business transformation.

Stephen Crystal, Founder & CEO of SCCG Management, said: “Our alliance with Gridlogic represents a pivotal step forward in our mission to navigate the complexities of the global gaming landscape. Gridlogic’s innovative approach and technological prowess in the Indian market complement our strategic goals perfectly. Together, we are poised to unlock new opportunities and drive significant value for our stakeholders in one of the world’s most dynamic gaming markets.”

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Pariekshit Maddishetty, Founder of Gridlogic, said: “Partnering with SCCG Management is a landmark moment for us at Gridlogic. Their global perspective and deep industry insights align seamlessly with our vision of revolutionizing the gaming sector through technology and artificial intelligence. This partnership not only strengthens our position in the Indian market but also accelerates our journey towards becoming a global leader in gaming technology solutions.”

The post SCCG Announces Strategic Partnership with Gridlogic appeared first on European Gaming Industry News.

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Asia

PAGCOR TURNS OVER PHP4.59-B CASH DIVIDENDS TO STATE TREASURY

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THE Philippine Amusement and Gaming Corporation (PAGCOR) today remitted a total of Php4.59 billion in cash dividends to the National Treasury to help fund the national government’s efforts in ensuring the country’s sustained economic growth and development.

The latest remittance represents 75% of PAGCOR’s net income in calendar year 2023. It is higher than the usual 50% remittance pursuant to the request of Finance Secretary Ralph Recto to PAGCOR to advance an additional 25% dividend to fund government expenditures.

PAGCOR Chairman and CEO Alejandro H. Tengco said the state gaming firm’s robust earnings from gaming operations enabled it to book Php79.37 billion in gross revenues and net earnings of Php6.13 billion in 2023 as dividend base, paving the way for a higher dividend rate declaration.

“Our remarkable income performance in 2023 set the stage for this higher dividend contribution to the national government, and this epitomizes not just financial success but our unwavering commitment to national development,” Chairman Tengco said.

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The dividend declaration consists of Php3.06 billion or 50% of PAGCOR’s 2023 net earnings plus an advanced 25% or Php1.53 billion which may be applied to future dividend remittances.

The dividend check was received by Deputy National Treasurer Eduardo Anthony Mariño III during simple ceremonies at the new PAGCOR Executive Office in Pasay City.

Mariño said the higher remittance from PAGCOR would help set in motion the administration’s socioeconomic agenda as the country is coming from a challenging year where it found difficulty achieving growth targets due to inflation.

“Every peso of this latest remittance from PAGCOR is directly translatable to additional expenditure which can help accelerate growth. This would certainly empower the national government in initiating transformative change this year,” he explained.

The remittance by government owned and controlled corporations or GOCCs of at least 50 percent of their net earnings to the National Government is mandated under Republic Act (RA) No. 7656, otherwise known as the Dividends Law

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The post PAGCOR TURNS OVER PHP4.59-B CASH DIVIDENDS TO STATE TREASURY appeared first on European Gaming Industry News.

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Affiliate Industry

SOFTSWISS is Best Platform Solution in Asia

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SOFTSWISS, an international tech company with over 15 years of experience in iGaming, celebrates its resounding success in Asia, triumphing in two categories at the Asia Gaming Awards. 

The Asia Gaming Awards convenes key stakeholders from the Asian gaming sector – operators, regulators, suppliers, and service providers – to celebrate achievements within the industry. In 2024, SOFTSWISS earned recognition in the categories of Best One-Stop Platform Solution and Best Affiliate Marketing Solution.

With over 15 years of experience in the iGaming industry, SOFTSWISS crafted a robust ecosystem of products that allows its clients to create an iGaming business from scratch. Having a complete range of products and solutions for online gaming and betting, SOFTSWISS also offers innovative tools for player engagement and a comprehensive system of services.

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Over 860 brands employ SOFTSWISS’ software to provide an exceptional player experience to more than six million players from different regions all over the world. Notably, 80% of SOFTSWISS clients are satisfied with the company’s products and services, according to a survey conducted by the leading marketing agency Kantar.

Vitali Matsukevich, Chief Operating Officer at SOFTSWISS, shares his delight: “SOFTSWISS is proud to acquire the esteemed Best One-Stop Platform Solution Award, which testifies to the outstanding contributions of our company to the development of the Asian gaming industry. We express our earnest gratitude to our dedicated team for their tireless efforts and our valued clients for their trust, pivotal to our success.”

Another well-deserved award belongs to Affilka by SOFTSWISS, a modular and feature-rich software platform which helps manage, track, and analyse affiliate performance. 

According to Kantar’s survey, held at the end of 2023, Affilka’s customer satisfaction rate was 8.1 out of 10. At the same time, 97% of respondents expressed satisfaction with Affilka’s service.

Boasting a client’s portfolio of more than 320 iGaming brands in 2023, the affiliate marketing platform shows almost two times YoY growth in affiliate GGR.  

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Anastasia Borovaya, Head of Affilka by SOFTSWISS, comments on the recent victory: “We are proud to achieve this recognition in the Asian gaming market. Our team puts a lot of effort into constantly evolving product performance. Let this accolade fuel our unwavering commitment to innovation and excellence, driving us forward as we continue to serve our clients with the highest standards of quality and service.”

Since the beginning of the year SOFTSWISS has already gained such prestigious accolades as Responsible Gaming, Crypto Company, Platform Provider, Software Supplier, and others. The esteemed awards, namely IGA, GGA EMEA, SiGMA Eurasia, EGR Nordics, SiGMA Africa, Asia Gaming Awards stand as obvious recognition of SOFTSWISS’ significant contribution to the iGaming industry all over the world. 

 

About SOFTSWISS 

SOFTSWISS is an international tech company supplying software solutions for managing iGaming projects. The expert team, which counts over 2,000 employees, is based in Malta, Poland, and Georgia. SOFTSWISS holds a number of gaming licences and provides one-stop-shop iGaming software solutions. The company has a vast product portfolio, including the Online Casino Platform, the Game Aggregator with thousands of casino games, the Affilka affiliate platform, the Sportsbook Platform and the Jackpot Aggregator. In 2013, SOFTSWISS was the first in the world to introduce a Bitcoin-optimised online casino solution.

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The post SOFTSWISS is Best Platform Solution in Asia appeared first on European Gaming Industry News.

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