Macao Government Ends 40-Year Horse Racing Tradition
The government in China’s gambling hub of Macao announced on Monday that after more than 40 years, there will be no more horse racing in the city. Macao, located on China’s south coast near Hong Kong, is renowned for its vibrant gambling scene that forms a significant part of its economy. However, the city’s jockey club, which was acquired by a consortium led by late casino tycoon Stanley Ho in 1991, has faced financial difficulties in recent years. As a result, the government has decided to terminate its contract with the jockey club in April.
Financial Woes Prompt Macao to Terminate Jockey Club Contract
The Macao Horse Race Company, which operates under the jockey club, requested last year that the government terminate its contract due to operational challenges and the inability to align horse racing activities with the current developmental needs of society. Macao government official, Cheong Weng Chon, stated that the activities have progressively lost their appeal to both local residents and tourists. After thorough research, the government made the decision to accept the application from the Macao Horse Race Company.
Macao Horse Racing Loses Appeal, No Public Tendering Planned
Local media outlets, including public service broadcaster TDM, reported that the government has no plans to conduct further public tendering for horse racing at the jockey club’s tracks. This implies that the termination of the contract marks the end of horse racing in Macao. The activity has seen a decline in popularity in recent years, leading to decreased interest from both locals and tourists. As a result, the government does not see the need to continue supporting it.
Macao Horse Race Company to Relocate Horses by 2025
According to the termination arrangement set to take effect on April 1, the Macao Horse Race Company has pledged to transport its horses to other locations by March 2025. The government has also stated that the company’s employees will be handled in accordance with the law. The relocation of the horses and the resolution of employee arrangements will be important steps in winding down the horse racing operations in Macao.
Macao’s Horse Racing Faces Financial Struggles Amidst Pandemic
Macao’s horse racing industry has been grappling with financial difficulties in recent years, which were further exacerbated by the COVID-19 pandemic. The accumulated losses of the jockey club increased to US$261 million in 2022, as reported by Macao Business in June last year. These financial struggles have made it increasingly challenging for the horse racing industry to recover and continue operating in Macao. The termination of the contract with the Macao Horse Race Company marks a significant blow to the already strained industry.
In conclusion, the government of Macao has decided to end its 40-year tradition of horse racing in the city. Financial woes, declining popularity, and the inability to align with the city’s developmental needs have led to the termination of the contract with the jockey club. The Macao Horse Race Company will relocate its horses by 2025, and the employees will be handled according to the law. The horse racing industry in Macao has been struggling financially, and the impact of the COVID-19 pandemic has further compounded its challenges.
Analyst comment
Negative
As an analyst, the termination of the horse racing tradition in Macao is a significant blow to the already struggling industry. With financial difficulties, declining popularity, and the inability to align with the city’s developmental needs, the termination of the contract with the jockey club was inevitable. The relocation of horses and handling of employees will be important steps in winding down the operations. The impact of the COVID-19 pandemic has further exacerbated the industry’s challenges.
