Macau’s future gaming concessions can be revoked by the government for posing a threat to national security and the special administrative region’s security, the government proposes in its Gaming Industry Bill which was posted on the official website of the Macau Legislative Assembly (AL) yesterday.
The bill’s outline was presented to the public by Secretary for Administration and Justice André Cheong Weng Chon last Friday. However, the full text of the bill became only known yesterday when the legislature posted it on its website.
The bill also proposes that each junket operator – officially known as “gaming promoters” – can only work for one of the up to six concessionaires. Currently, junket can work for all gaming operators simultaneously.
According to the bill, junkets will no longer be permitted to engage in revenue-sharing arrangements with gaming concessionaires. Junkets will also be banned from operating their own casino rooms. Currently, junkets are said to run a raft of so-called VIP rooms in local casinos, based on a revenue-sharing deal between junket operators and casino bosses. The bill proposes that junkets will only be permitted to work with concessionaires on a commission basis.
The bill also suggests that Macau’s up to six gaming concessionaires will have to undergo evaluations by the Gaming Inspection and Coordination Bureau (DICJ) every three years. The aim of the triannual assessment is to ensure that the concessionaires meet all their contractual obligations vis-à-vis the government.
Cheong announced last Friday that the bill proposes that the government can grant up to six gaming concessions for up to 10 years, with a three-year extension only possible under exceptional circumstances. Currently, the three gaming concessions have a maximum validity of 25 years, including a possible extension of up to five years.
The bill also proposes a ban on gaming subconcessions, of which there are currently three.
The bill must be passed by lawmakers to become law.
Macau’s three gaming concessions and three subconcessions expire in June. However, the government has hinted that they could be extended for a while. The current concessions and subconcessions will not be renewed. The three concessionaires and three subconcessionaires must instead submit new bids if they wish to continue their operations. All of them have indicated that they are willing to do so.
