The dust has finally settled, and many people are lamenting that Genting Group is out again. Genting Group once bid in 2001, and that time they finished sixth and unfortunately went out.
The founder of Genting Group, Lin Wutong, is a Malaysian Chinese with ancestral home in Fujian, China. The Lin Wutong family is also a patriotic Chinese tycoon. After Lin Wutong's death, his sons inherited his business, of which his son Lin Guotai was the most outstanding and the first person in charge of the family's business. Genting Group, which at one point had a market capitalization of $30 billion, is also one of the largest gaming groups in the world. Their main project is in Malaysia, but they also have gambling businesses in several countries.
Lin Guotai and his brother have also invested a lot in the mainland in recent years, and they invested in the ski resort in Zhangjiakou for the Winter Olympics. At the same time, they have created a series of amusement and real estate projects around the entire ski resort. Among the members of the bid for the Winter Olympics, there is only one member who is not Chinese, and that person is Lam's younger brother.
In fact, in Macau, Genting Group also has a layout, and the shopping mall they invested in will open by the end of this year. All indications prove that this time Genting Group has a good chance to take away a gambling card. However, surprisingly, in the end, Genting Group ranked seventh among 7 companies and once again failed to gamble.
The exit in 2001, Genting Group is a pity, why say so? In 2001, Macau first announced the issuance of three gambling cards. At that time, 21 companies were attracted to bid, and in the end, SJM, Wynn and Galaxy won three gambling cards. Genting ranked sixth, unfortunately out.
However, later, because Galaxy fell out with its partner Sands, Macau agreed to split Galaxy's gambling cards and became the main card and the secondary card, which was used at the same time as Galaxy and Sands. To be fair, SJM and Wynn can also split the gambling cards. So the three gambling cards became six gambling cards.
However, if six gambling cards are dealt from the beginning, then Genting Group can get a gambling card as the sixth place. After Genting Group missed out on Macau's gambling cards, one wanted to make a comeback. This Macau gambling license bidding has encountered another epidemic, and almost all global gaming giants have been absent from the bidding.
Macau confirmed early on that six cards would be issued, but in the end, in addition to the current six companies in Macau, only one company from Genting Group participated.
Before the bidding, many people speculated that the current Macau gaming industry suffered heavy losses, Genting Group dared to participate at this time, must have reached an agreement with Macau high-level, and then linked to their background and the layout of the past few years, many people even think that Genting card taking is a sure thing. But the end result was a surprise.
Macau announced that it would not approve new gaming land in 10 years. This means that Genting's way to get cards is blocked. The final score showed that Genting Group ranked seventh and unfortunately went out.
But if you think about it carefully, you will find that this may be a game. Genting Group is a helper invited by Macau. This time Macau gambling card bidding, because of the epidemic, each company is very conservative. Because in the past 3 years, these companies have suffered heavy losses.
However, Macau certainly cannot just look at the present, this time the gambling license operation period will be as long as 10 years. Therefore, Macao must definitely have a long-term plan. Macau has long decided to vigorously develop the non-gaming business, so they want to force these bookmakers to invest more in other areas.
However, this time the bidding, because of the epidemic, there were no other powerful people to bid. So Genting Group came. As soon as Genting Group arrived, other companies had to find ways to protect themselves. If they fail to meet Macau's requirements, then they could be replaced by Genting Group.
To put it bluntly, the biggest role of Genting Group is not really to bid, but to put pressure on the current six gaming companies in Macau. So before the announcement of the bidding results, many people had seen the news that Macau had reached an investment agreement with six major gaming companies.
Among them, Galaxy and Sands agreed to invest 20 billion each, and the other four bookmakers agreed to invest 15 billion. That's exactly $100 billion in investment, which will be invested in non-gaming over the next 10 years.
Macau has now set a goal of increasing non-gaming revenue to 60% in the future, up from 20% at present. At the same time, the six bookmakers agreed to each company to increase their reserves by another 5 billion to meet unexpected needs.
This is equivalent to saying that 6 companies will come up with another 130 billion in the next 10 years. They have lost a lot of money in the past three years, and it is not easy to come up with so much money at this time. If Genting Group does not bid this time, Macau will not have the confidence to let them shell out so much money.
So I have to say that this time Genting Group is a big favor for Macao. Genting Group is not so simple to accompany the run. In fact, Genting Group has also suffered heavy losses in the past 3 years, and their Star Cruises has also gone bankrupt, which is a company with a market value of 20 billion at its peak. Therefore, why Genting Group took the risk to bid in Macau at this time, and what is the real purpose, in fact, the real discerning people can still see it.