Legislative Assembly passes bill draft on new regulations for junket entities, satellite casinos and sub-agents

If later approved in its final form, 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, and turn them into a new law.

The bill – revealed on March 31 – was proposed in tandem with the current amendment to the general gaming law already under the Legislative Assembly standing committee evaluation stage.

The draft proposes that in order to obtain a license companies engaged in gaming promotion – known as junket operators – will have to hold a social capital not inferior to MOP10 million (US$1.2 million), have a majority stake in the company held by a Macau resident, and not hold any gaming-related outstanding debts.

During the bill presentation Secretary for Economy and Finance Lei Wai Nong stated that the bill will clarify 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, such as unauthorised deposits.

“We just want to reinforce and clarify the legal requirements already in force for the last 20 years,’ Secretary Lei added.

The general gaming law bill already proposed increased penalties against accepting cash or other deposits illegally by promoters, with gaming concessionaires bearing legal responsibility in case of infractions by junket operators with whom they have agreements.

For example, criminal responsibility for illegally accepting cash or other deposits could involve a prison sentence of between two to five years in prison.

Managing entities responsible for properties where third-party run casinos are operated – known as ‘satellite casinos’ – will also only be allowed to establish business contracts with one gaming concessionaire, as is proposed for junket operators.

During the bill discussion, legislator Leong Sun Iok expressed the bill was necessary to prevent some of the illicit actions and ‘excesses’ witnessed in the industry before, but asked opinions by gaming operators be taken into account in the future committee level discussion.

By Nelson Moura