The bill also revealed that future junkets will only be allowed to do business with one sole gaming operator, gaming concessionaires will be allowed to have a business relationship with more than one gaming promoter.

On March 31 the Macau SAR Executive Council advanced a new law proposal to regulate junket operators, their sub-agents, managing entities and their relation to gaming concessionaires.

The new bill – broadly named ‘regulations for operating games of chance in casinos’ – will effectively replace the 2002 administrative regulations that governed the licensing and activities of gaming promoters, also known as junkets.

It was proposed in tandem with the current amendment to the general gaming law already under Legislative Assembly evaluation.

In his intention statement, local authorities state the law is intended to complement the general gaming law amendment, so as to perfect the suitability oversight mechanisms, the responsibilities of the entities targetted and allow the gaming sector to develop in a “healthy and organised” fashion while preventing the practice of illicit acts.

Few details on the bill – named ‘Regulations for operating games of chance in casinos” – were provided by authorities the full law proposal was published by the legislative body today.

The document details the requirements for future gaming promoters to be licensed by the Gaming Inspection and Co-ordination Bureau (DICJ), which include the need for the promoter to be a limited liability company based in the Macau SAR and with over 50 per cent of its capital held by a Macau resident with over 21 years of age.

The intended gaming promoter will also have to submit a declaration from the gaming concessionaire with which it intends to establish a business relationship since in the future, junkets will only be allowed to do business with one sole gaming operator.

However, according to the law, gaming operators will be allowed to have a business relationship with more than one gaming promoter, with the maximum number of promoters each concessionaire partners with to be defined annually by the DICJ until November 30.

Gaming concessionaires could, however, be held responsible for illegal acts carried out by junket administrators or employers and their sub-agents, unless it is proven they carried out all their oversight duties.

The promoter applying for a license will also not be allowed to have any outstanding debts linked to gambling activities and prove they have an ‘adequate’ financial capacity.

Partners, administrators and main employees must also prove their ‘suitability’ and could have not previously declared bankruptcy nor have been responsible for debts connected to the bankruptcy of a third party.

The suitability review of a gaming promoter will cover its shareholders, administrators, employees and sub-agents.

In this review elements such as the “character and reputation” will be evaluated; the financial situation of the targetted by the review if there re suspicious that the funds to be used by the junket were illicitly raised; or any illicit transactions with criminal groups.

Aside from these requirements the bill also states that authorisation for a gaming promoter license will consider ‘the dimension’ of the sector in the SAR.
As previously, junket licenses will have to be renewed annually and valid until December 31.

By Nelson Moura