Macao‘s government has announced—in what is not exactly a surprise—that it will extend the MGM China and Sociedade de Jogos de Macau concessions until June 26, 2022. This not only creates a level playing field for all concessionaires, it gives SJM badly needed breathing room 
for completion of Grand Lisboa Palace. In return, MGM and SJM have to pay $24,746,000 apiece for the extension. An asymmetrical compensation will be that each will probably get 25 more table games. “Overall, the Macau government believes this should allow (1) a synchronised rebidding process of the concession for the next term of the Macau government; and (2) more public discussions and consultations for the future development of the gaming industry as a whole,” wrote Credit Suisse analyst Cameron McKnight.
He concluded, “We believe that this extension would buy time for the Macau government to consider terms for the rebidding and we don’t rule out another extension by 2022; under the current rule, the Macau Chief Executive can extend the license by a maximum of 5 years. This 
extension arrangement also indicates to us that the Macau government is asking for reasonable terms which should ease investors’ concern for material terms upon license expiry, and this should help lift valuation multiple in longer term, in our view.” Break out the champagne.
In a separate note, McKnight warned that a visitation cap had been proposed in the Macanese legislature, “citing concerns that the record-breaking visitation levels in Macau could be overwhelming the city and its leisure services.” The idea is not new, having previously been floated in 2015. Tourism was 33 million/year and is 36 million now. The U.S. trade war is also affecting the Macao-Guangdong area: “February exports fell 21% y/y, vs. 9% growth in January – driven particularly by weak external demand.” Auto was sales were also 18.5% lower last month. On the plus side, casinos is Macao are hiring more dealers. So, on the whole, it’s a week of good news for the enclave.
* Donald Trump can pop a chill pill about getting re-elected. Bookmaker.eu gives him 15-1 odds of staying in the White House next 
year. (Beto O’Rourke has the best chance against him, Howard Schultz the worst.) If any world leader should be worried it’s Benjamin Netanyahu, caught between an ethics scandal and an imminent election. He’s even money to go bye-bye. However, British Prime Minister Theresa May, who bungled Brexit, is closing fast on Bibi. U.S. diplomats were recently withdrawn from Venezuela, a warlike move that may explain Nicolas Maduro‘s 4-1 odds. It seems a little ghoulish to be taking wagers on the likelihood of a military overthrow but there’s not much European oddsmakers won’t take action upon.
* Penn National Gaming got the go-ahead for its $111 million satellite casino in Caernarvon Township. The facility will hold 30 table games, 750 slots and live entertainment. Caernarvon is expected 
to benefit to the tune of 250 permanent jobs and over $1.5 million in annual revenue. Noting that 40 Pennsylvanians turned out to either cheer or protest Penn, Supervisor Allen Styer said, “We usually have about four people at our meetings and we have done nothing differently than any other decision we make in the township.” Supervisors suspected that attendees’ numbers were swelled by do-gooders from outside Caernarvon. If so, too bad for them.
* Here’s a story that will warm the cockles of your heart: “A family had left the [Ritz-Carlton Amelia Island] only to realize they had forgotten their little boy’s stuffed animal in the room. A hotel employee retrieved ‘Joshie,’ and mailed it to the family. When the package arrived, it not only contained the stuffed giraffe, it also had photos and a signed note. The staff thanked the boy for letting Joshie stay an extra day. The photos showed Joshie on a chair next to the pool, a golf cart on the beach, and getting a facial at the spa.” Awwwwww!
