Macau Rejects Renewal of 100 Casino Exec Work Permits

Macau officials announced Monday an amendment to a standing 5-year agreement with foreign casino investors and operators in which 85% of management positions will be awarded to local residents by 2020.

Labor Affairs Bureau (DSAL) director Wong Chi Hong revealed on Monday during a plenary session of Macau’s Legislative Assembly the most recent report on local residents’ participation in the local gaming industry and their role in casino and resort management positions. As part of the original deal struck between Macau’s gaming industry and regulatory officials, local residents were to make at least 85% of the industry’s middle and upper management positions by 2020. By September 2016 the number of local residents in these positions reached 84.8%. As a result, the local government has decided it will advance its timetable for reaching the 85% mark for some time in 2023.

According to the Macau Daily Times many foreign executives will have their rights to work in the region expire within the next year, with Wong commenting that there were, “Over 100 non-local workers on resort facility management.” That have been earmarked as non-essential personnel, ”And we have already told the gaming companies we will not renew those work permits.”

The move follows a recent appointment from the Galaxy Entertainment Group, which has chosen gaming notable Scott Kreeger, formerly of SLS Las Vegas, to head its flagship property Galaxy Macau’s expansion.

Operator Outlook and Potential Conflicts

The comments from Macau’s Labor Affairs Bureau director came in direct reference to a conference call held with Las Vegas Sands board members. LVS Chairman Sheldon Adelson and president Rob Goldstein offered positive comment on the announcement, supporting government efforts alongside the notion that local residents assume greater roles in the industry.

While the move is seen as a net positive for local residents and government, it has been speculated that Las Vegas Sands Corp. will take a foreground position in the transition and serve as an example amid worsening ties between Beijing and the US.

Adelson has been the biggest financer of now President Donald Trump, who has been an outspoken critic of Chinese economic policy during his campaign and after being sworn into office. Add to this the tension amid Chinese land interests in the region with a US policy that has dictated aggression in the region will be met with swift action and Adelson may find himself an unfortunate scapegoat between the world’s 1^st and 2^nd largest economies.