SJM raises annual caps for L’Arc, Jai Alai

The yearly payment limitations for SJM Holdings Ltd., the operator of the Macau casino, have been raised. These payments are connected to leasing space at the Jai Alai building, providing services, and obtaining licences to operate the casino at the L’Arc hotel.

The anticipated renewal of the lease for the Jai Alai facility and the sharp increase in L’Arc service costs from the start of 2023 were the driving forces behind the decision.

SJM Holdings has increased the yearly maximum for the Jai Alai building lease for 2024 to HKD10.2 million. The restriction for 2025 is still in place and is subject to periodic review.

The updated annual ceiling for the L’Arc casino hotel for 2023 is now HKD510.0 million, up from HKD253.1 million. According to SJM Holdings, the revival of the Macau gaming sector in the aftermath of COVID-19 and a rise in tourist arrivals to Macau are the main reasons why the real amount of service fees has been rising in 2023. Under the terms of the L’Arc services agreement, the limits for 2024 and 2025 are still in place but will be evaluated on a regular basis.

SJM Holdings had an almost HKD2.76 billion net loss for the first half of the year on sales that fell by 20.9 percent on an annual basis to HKD4.13 billion.

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Original story by: GGRAsia