The Macau Legislative Assembly (AL) will today conduct its first reading of a draft bill on amendments to Macau’s gaming law.
The draft bill, titled, “Amendment to Law No. 16/2001 – Legal framework for the exploitation of games of chance in casinos”, was published last week ahead of a planned re-tendering of casino concessions. The current 20-year licenses of Macau’s six concessionaires all expire at midnight at the end of 26 June 2022.
Once the AL completes its first reading and vote on the contents of the bill, it will be sent to a sub-committee for possible revision before returning to the AL for a second and final reading.
There is no timeline for completion of this process although estimates from analysts and industry commentators have ranged from as short as two months to as long as 12.
However, Inside Asian Gaming is anticipating an extremely aggressive approach to the passage of the bill through the AL, resulting in the bill becoming law possibly even as early as the end of February. Any drawn-out process would make it difficult for the government to complete re-tendering by 26 June and open the door for an extension of current licenses. The government has already stated that any such extension would be for a “short term”, which IAG interprets as perhaps meaning six months.
Among the amendments to Macau’s gaming law contained in the draft bill are a halved license term of 10 years, the implementation of an official cap on gaming tables and gaming machines, minimum revenue levels guarantees with any shortfalls to be made up by concessionaires, a planned phasing out of satellite casinos, an increase in the minimum capital each concessionaire must hold from MOP$200 million (US$25 million) to MOP$5 billion (US$625 million), and new rules around junkets. These junket rules include a ban on the existence of junket rooms in Macau’s casinos and on revenue share arrangements between junkets and casino concessionaires.
The bill also outlines expectations around Corporate Social Responsibility contributions and responsible gaming initiatives.
