The Macau Jockey Club (MJC) recently disclosed its staggering losses amounting to MOP$2.5 billion (US$310 million) before entering into an agreement with the Macau government to terminate its 24-year horse racing concession.
Financial Struggles and Concession Termination:
The MJC, operating under Macau Horse Racing Company Ltd, acknowledged its commitment to the principles of “diversification of gaming” and “racing of horses” to support Macau’s tourism industry. Despite its efforts, the company faced continuous losses, exacerbated by the adverse impact of the pandemic over the last three years, making it increasingly challenging to sustain operations. The decision to terminate the concession was a difficult one, with the suspension of all races and race-related operations slated for April 1, 2024.
Historical Overview and Restructuring:
Originally known as the Macau Trotting Club, the MJC underwent a transformation in 1989 with the introduction of flat-racing. In 1991, a consortium led by Dr. Stanley Ho acquired the club to address financial concerns. In 2018, despite significant losses, a new concession was signed for 24 years and six months, contingent upon fulfilling certain criteria, including raising registered capital and completing facility investments.
Completed and Unfinished Investments:
The MJC successfully met some investment criteria, such as refurbishing the horse swimming pool and stables, renovating race building floors, and improving the racetrack. However, larger tasks, including the construction of public seating, hotels, apartment buildings, tennis courts, membership facilities, and a horse theme park, remained unfinished by the time of the concession termination. The failure to meet these obligations played a pivotal role in the government’s decision to terminate the concession.
Impacts on Stakeholders:
The termination of the horse racing concession has significant implications for various stakeholders, including horse owners, members, and MJC staff. The club expressed gratitude for the ongoing support and assured members that existing facilities would remain accessible. However, details regarding the future of horses and compensation for staff will be communicated in due course, aligning with Macau’s labor laws.
Macau Government’s Position:
The Macau government, in a separate press conference, confirmed its decision not to continue horse racing or introduce any other gaming activities on the land currently occupied by MJC. Once the club ceases operations, the land will be returned to the Macau SAR Government.
The termination of the Macau Jockey Club’s horse racing concession marks the end of an era for the renowned institution. Financial struggles, compounded by unmet investment obligations, have led to this decision, impacting not only the club but also its stakeholders. As Macau prepares for the cessation of horse racing, questions linger about the future use of the land and the broader implications for the region’s gaming and entertainment landscape.