The SAR Government Thursday signed the contract with Macao Gaming Company (Sociedade de Jogos de Macau) for an 18-year concession in casino gaming operation.

Chief Executive Edmund Ho and Stanley Ho Hung Sun signed the contract on behalf of the two parties.

According to the contract, the concession, which is valid from April 1, 2002 to March 31, 2020, allows the operation of 11 casinos in designated location.

The number of casinos and their locations is subjected to review five years after the establishment of the contract.

The concessionaire is obligated to fulfill the projected investment of over 4.7 billions. Any dividend in investment could be designated to the expenditure of projects that would benefit the SAR.

The contract has also stipulated the financial liabilities of the concessionaire, which included: an annual payment of 1.6% of the gross gaming casino revenue to a public foundation for the promotion and development of cultural, social, economic, educational, scientific and charity activities/; an annual payment 1.4% of the gross casino revenue for urban development and construction, promotion of tourism and social security, on top of the casino tax that accounts for 35% of the concessionaire¡¦s gross gaming revenue.

In addition, the concessionaire is also liable for an annual premium of 30 million patacas plus a variable amount generated from the number of gaming tables and machineries such as slot machines owned by the concessionaire.