Lawmaker-cum-restaurateur Andrew Chan Chak Mo, who chairs the Legislative Assembly’s 2nd Standing Committee, said yesterday that the contribution rate allocated from the gross gaming revenue of the city’s future gaming concessionaires will remain unchanged, adding that the concessionaires will have to get the green light from the chief executive before taking any major financial decisions.
Addressing a press briefing after yesterday’s closed-door meeting reviewing the city’s gaming amendment bill with government officials, Chan told the media that the meeting mainly focused on the obligations of the future gaming concessionaires.
The 2 ½ -hour meeting was attended by Secretary for Economy and Finance Lei Wai Nong and other government officials, including six lawmakers who are not members of the 2nd Standing Committee but are entitled to attend the meetings without taking an active part.
According to the current gaming law, so-called contributions (dues) of up to three percent from the up to six concessionaires’ gross gaming revenue are earmarked for the city’s development purposes, such as promoting tourism and providing funds for the Social Security Fund (SSF).
Chan mentioned some committee members’ question on whether the contribution rate would be increased. Chan quoted the government officials as saying that no increase will be made because the special gaming tax and the concession premium, plus other special kinds of taxation, already account for 40 percent of the gross gaming revenue, which is much higher than the tax rate in other jurisdictions.
The special gaming tax amounts to 35 percent of the concessionaires’ gross gaming revenues, while the “contributions” and other mandatory payments amount to up to five percent.
Some committee members also asked if a larger portion of the contributions could be allocated to the Social Security Fund. Chan quoted the government officials as saying that the provisions related to the Social Security Fund should not be amended by the gaming bill and that future discussions with the Secretariat for Social Affairs and Culture could be held if necessary.
According to the bill, the future gaming concessionaires must notify the chief executive before taking any “major financial decision” that exceeds the amount stipulated in their respective concession agreement. Chan said that some committee members asked how to define a “major” financial decision. Chan quoted the government officials as saying that the requirement will be clearly stated in the respective concession agreements signed by the future concessionaires.
Chan also quoted some committee members’ question on whether the bill will stipulate the maximum amount of such major financial decisions for each concessionaire. Chan quoted the officials as saying that it was not possible to standardise the amount of money in the bill as different companies are of different sizes, and that failure to notify the chief executive about a major financial decision that exceeds the contractually stipulated amount could result in a fine of two to five million patacas, or even cancellation of the concession if it is found to be violating the respective regulations.
Chan added that the government would not refuse a major financial decision if it turns out to be a “normal” one.
Lawmaker-cum-restaurateur Andrew Chan Chak Mo (right), who chairs the legislature’s 2nd Standing Committee, talks to reporters after the committee’s closed-door meeting yesterday reviewing the government’s gaming amendment bill, as the committee’s secretary, Lam Lon Wai, looks on. Photos: Ginnie Liang
