Part V: Regional & Cultural · Asia-Pacific Regional Terms

Sub-concession

Macau — Regulatory/LegalREPORTED

(1) A sub-concession is a derivative gaming concession granted by an original concessionaire to another operator, effectively creating additional casino operators beyond the original three concessions awarded in 2002. Sub-concessions were created when Galaxy and Sands could not reach an operational agreement, leading the government to permit Sands to operate via a sub-concession from Galaxy. This mechanism also enabled MGM China and Melco Resorts to enter the Macau market. The 2022 gaming law eliminated the sub-concession framework, replacing all concessions with direct 10-year concession contracts. (2) A secondary authorization granted by a concessionaire to another entity to operate casino gaming, effectively sub-licensing the concessionaire’s rights. Under Macau’s previous gaming framework (2002-2022), three sub-concessions were granted, resulting in a total of six casino operators. However, Macau’s Gaming Law amendments in 2022 eliminated the sub-concession system. Under the new framework, all six operators hold direct concession contracts with the Macau government, and no new sub-concessions can be granted.

In practice

The sub-concession mechanism was a pragmatic solution that expanded the market from three to six operators while maintaining the legal fiction that only three concessions existed. It was unique to Macau and had no direct parallel in other gaming jurisdictions.

One entry from the Casino Industry Glossary, 1,090 terms written for surveillance, compliance and operations professionals rather than for players. Definitions describe industry usage; where a term carries a regulatory meaning, verify against the instrument that governs your jurisdiction.