Asian Economic News: Macao signs deal with U.S. casino tycoon's venture

HONG KONG, June 27 Kyodo

The Macao government has signed a 20-year gambling concession deal with Galaxy Casino S.A., a joint venture between U.S. casino tycoon Sheldon Adelson's Las Vegas Sands Inc. and a Hong Kong businessmen, a government spokesman said Thursday.

Galaxy Casino is the third and final winner of new casino operating licenses in the former Portuguese enclave which returned to Chinese rule in 1999.

Under the deal, the company will invest 8.8 billion patacas (about $1.09 billion) within 10 years and must open two resorts and a conference center before the end of 2006.

The company will also have to pay 35% of gross income as taxation and another 4% for the enclave's social, cultural and economic development plus other premiums for gaming tables and slot machines.

The Macao government hopes to change the enclave into a regional center for tourism, entertainment, and conventions and exhibitions by opening up the lucrative gaming sector to more operators following the end in March of Macao Tourism and Amusement Co.'s 40-year-old monopoly.

On Monday, the Macao government concluded a 20-year deal with U.S. gambling mogul Stephen Wynn's Wynn Resorts (Macao) Ltd., which promised to invest 4 billion patacas within seven years.

In March, Macao Gambling Holding Co., a subsidiary of Macao Tourism and Amusement, sealed an 18-year contract with the government to invest about 4.74 billion patacas in gambling and entertainment projects.