GGRAsia – Macau ops subject to govt assessment every 3 years

Macau ops subject to govt assessment every 3 years

Jan 19, 2022 Newsdesk Latest News, Macau, Top of the deck

Macau gaming concessionaires will be subject to a review by the city’s casino regulator, the Gaming Inspection and Coordination Bureau, every three years, according to the draft of the gaming bill published on Tuesday. The three-year review aims to examine the operators’ “contractual compliance in general”, states the document.

If the review reveals that a concessionaire has not fully observed the contract terms, the operators will need to improve the relevant situation within a deadline set by the incumbent secretary for economy and finance.

The bill, still to be approved by the city’s Legislative Assembly, will shape how the industry looks for years ahead. The draft details that the number of licences would be capped at six, with a lifespan of up to 10 years.

Safeguarding national security and the security of the Macau Special Administrative Region is listed as the first aim in the bill, followed by promoting the diversification and sustainable development of the city.

The bill states that the Macau government has the right to terminate the concessionaire’s contract for reasons including threats to national security, public interest, or breaching of its contractual obligations.

The Macau government is currently drafting a bill to revise the Law on Safeguarding National Security. The city’s Secretary for Security, Wong Sio Chak, said earlier this month that the authorities hoped to complete the process within this year.

Macau has also proposed in its draft gaming bill, a formal cap on the number of casino tables and gaming machines in the local casino market, a minimum annual target of casino gross gaming revenue (GGR) that the city’s six operators will have to meet, and tighter controls on junkets.

Each licence holder in Macau will have a 30 percent cap on the number of shares that can be publicly listed, while any major financial transactions must be communicated to the local authorities.

The document also details what would be expected of new licensees, including support for local small and medium-sized enterprises; promoting the development of local industries; ensuring employment of the local population; support for activities of “public interest”; and support for fields including education, science, culture, sports, and the environment.

The draft bill is available in Chinese (here) and Portuguese (here).