The Macau Jockey Club (MJC) registered a loss of MOP88 million (US$11 million) for the last fiscal year, continuing to eat into corporate capital. Portuguese-language publication Hoje Macau has reportedly noted that because of continued losses the company’s corporate capital has fallen to less than half of what it was when the company was set up, noting this would be a violation of laws set down in the Commercial Code of the MSAR. Under established rules, MJC is supposed to inject capital within 60 days to remedy the situation, or dissolve the company. August 31 marks the end of the 60 day period, following over a decade-long string of losses beginning in 2005.
If repair or dissolution does not occur within the 60 day period, the administrator could face criminal penalties including imprisonment.
The Macau Gaming Inspection and Coordination Bureau (DICJ) responded publically to the issue stating that MJC has until the end of the month to present a proposal to solve the problem. MJC says they are aware of the situation and have spoken of article 206 of the Commercial Code internally since as early as March, according to local reports.
According to reporters who took comments from MJC’s chief executive on the sidelines of a closing ceremony for the 2015-2016 race season, the operator has plans to add attractions to the facility and has already submitted plans to the regulator. According to Macau TDM, Thomas Li says that betting volumes have caused the losses which total some MOP4,000,000,000 (US$504,339,301) since 2004.
“The amount of bets, both locally and from abroad, has dropped 30 percent last racing season from the preceding one,” Mr. Li said. “Yet we have a series of measures to increase bets,” he added. “Starting from September, we’ll upgrade our betting systems that have been running for over two decades. This is the biggest breakthrough,” he added.
The operator also plans to pipe in live races from South Korea and continue simulcasting contests from Hong Kong and Singapore and to increase bet volumes and profits. Plans are being considered to refurbish the facilities to attract more bettors as well. A more diverse meet offering is also being planned with an international race for female jockeys scheduled for early next year.