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

1.2 Sub-concession

Macau — Regulatory/Legal

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.

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 — 1,157 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.