Macau Horse Racing Co. Ltd., which operates the struggling Macau Jockey Club, has agreed with the government to extend the current contract for its horse-betting business until 2017, though the contact has yet to be signed, according to local media.
Citing unnamed sources, the Business Daily reported that the new contract will be published next week in Macau’s Official Gazette, once it has been signed by the Secretary for Economy and Finance, Lionel Leong.
The new contract includes the mandatory payment of MOP15 million per year, which has not changed since 2005, to the government for the exclusive right to run the horseracing business.
The company has held the monopoly on horse racing betting since 1978, though has encountered poor financial performances in recent years.
Its last contract, renewed by the government about 10 years ago, expired on August 31.
Macau’s revenue from horse racing declined 52.6 percent year-on-year to MOP100 million during the first half of this year, compared with MOP190 million in the first six months of last year.
In 2014, the company lost MOP51.25 million compared to a loss of MOP41.4 million in 2013.