HONG KONG, Dec 6 (Reuters) - The National Basketball
Association (NBA) has signed a multi-year agreement with Macau
casino operator Sands China ( SCHYF ), to play pre-season games in Macau,
a move that comes as authorities urge the casino industry to
diversify away from gambling.
The agreement, which was reported by local media outlets on
Friday and confirmed to Reuters by a source with knowledge of
the deal, sets the scene for an NBA legends celebrity game on
Dec. 7 that Sands is due to host at its Venetian property.
The NBA plans to host two pre-season games each year for the
next five years at Sands' Venetian arena. It will begin in
October next year, NBA's deputy commissioner Mark Tatum told
local media at a press conference in Macau on Friday.
Macau, a special administrative region of China, is the
only place in the country where citizens are able to legally
gamble in casinos.
It's government and Beijing have been urging the six
licensed casinos - Wynn Macau ( WYNMF ), Sands China ( SCHYF ),
SJM Holdings, Galaxy Entertainment, Melco
and MGM China ( MCHVF ) - to increase their proportion
of revenue from non-gaming.
Macau's economy is heavily dependent on the casino industry
which contributes to around 80% of local tax revenue.
Last year Macau's government rolled out its first blueprint
centred on a strategy where tourism and leisure are the main
pillars, supported by emerging industries including traditional
Chinese medicine, health, financial services, technology as well
as conventions, exhibitions, trade, culture and sports.
It aims for non-gaming industries to account for around 60%
of Macau's GDP by 2028 versus 50% pre-pandemic in 2019.