Macau is becoming a city of sports and entertainment

Macau is becoming a city of sports and entertainment


Grant Chum, CEO and president of Sands China, said during Chinese President Xi Jinping’s visit to the city that ended Friday that Macau is diversifying its economy away from gambling and becoming a “city of sports and… a city of entertainment”.

In an interview on the topic “Squawk Box Asia“Chum cited a deal announced in early December between Sands China and the North American National Basketball Association to play two NBA preseason games in China.

“We will bring the NBA China Games back to China, but this time in Macau,” Chum told CNBC’s Emily Tan. “We don’t want to just have a one-off event. We believe that a multi-year partnership, where we will play these pre-season games over several years, will really strengthen Macao’s positioning.”

The games are part of Sands China’s commitment to invest $4.5 billion in the city by 2032, of which “over 90% … will go to non-gaming investments,” Chum said.

Overall they are six gambling providers Macau – China’s special administrative region – pledged to invest nearly $15 billion to reduce its economy’s reliance on gambling revenue. The operators’ gaming licenses were renewed in 2022 – but for 10 instead of 20 years – After each company promised to invest heavily in non-gaming projects.

Macau is "Redefine its position in global tourism"says the CEO of Sands China

But for some, Change is not happening fast enough.

In a speech in Macau on Friday, Xi praised the special administrative region before laying out “three expectations” for the city, including a call to “keep up with the trends of the times” while showing “greater courage to reform and innovate.” according to a transcript from China’s State Council.

Xi also urged the city to take steps to attract more foreign talent. a sentiment echoed by Allan Zemannon-executive chairman of Wynn Macao, Thursday on “Squawk Box Asia.”

Building the Macau brand

Chum said Sands China has already undertaken a major project – the renovation of the 14,000-seat Venetian Arena, formerly known as Cotai Arena, in November.

“We have invested over $200 million in the major modernization and renovation of the Venetian Arena,” he said. “This facility will be state-of-the-art, not only for exhibitions and conferences, but also for live concerts and, increasingly, large sporting events.”

Macau needs to attract more outsiders, says Wynn's Allan Zeman

The Venetian Arena will host NBA preseason games beginning in 2025. The first two games between the Brooklyn Nets and Phoenix Suns are scheduled for October, NBA deputy commissioner Mark Tatum said earlier this month.

Chum said these games would strengthen Macao’s standing as a destination for major global events.

“We expect this will strengthen Macau’s brand equity over time,” he told CNBC.

Chum said Macao’s gaming revenues had recovered to about 80% of 2019 levels, while tourist arrivals – which he called “the key health indicator for the tourism economy” – reached pre-pandemic levels in August and October.

Friday marked the 25th anniversary of the return of Macau to China by the British in December 1999.

The NBA deal also marks the return of preseason games to China for the first time since 2019. China took place in October of the same year abruptly ended an agreement to broadcast preseason games in the country via a tweet from then-Houston Rockets general manager Daryl Morey that expressed his support for the anti-Beijing protesters in Hong Kong.



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