Asian Economic News: Macao signs gambling license deal with U.S. casino tycoon

HONG KONG, June 24 Kyodo

The Macao government signed a deal with Las Vegas-based gambling tycoon Stephen Wynn on Monday, granting his company a license to operate in the enclave for 20 years starting Wednesday.

Wynn Resorts (Macao) Ltd. is one of three winners of new gambling concessions in the former Portuguese territory which returned to Chinese rule in 1999.

The Macao government hopes to transform the enclave into a regional center for tourism, entertainment, and conventions and exhibitions by ending the 40-year-old monopoly in the lucrative gambling sector.

Under the deal, Wynn Resorts must invest 4 billion patacas (about US$497 million) within the first seven years and complete the construction of its first entertainment and resort complex by 2006, a spokeswoman for the Macao government said.

The company will have to pay 35% of its gross revenue as taxation and another 4% for the enclave's urban, social and cultural development, the spokeswoman said.

Wynn Resorts is planning to build a luxury casino complex opposite the landmark Hotel Lisboa run by rival local casino king Stanley Ho's Macao Gambling Holding Co.

The enclave's government said it is now vetting the land lease application made by Wynn Resorts.

The government added that it hopes to conclude a license deal with Galaxy Casino Co., the third winner of the gambling concessions, within this week.

Galaxy has Las Vegas Sands Inc.'s The Venetian as a shareholder.

In March, the government sealed an 18-year contract with Macao Gambling Holding, which promised to invest about 4.74 billion patacas in gambling and entertainment projects.