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Gaming law draft bill fully revealed at Executive Council press conference

Macau's Executive Council fully revealed a draft gaming law bill on January 18, 2022, capping concessions at six and setting new rules for junkets and satellite casinos.

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Macau's Executive Council fully revealed a draft gaming law bill on January 18, 2022, at a press conference, and the Legislative Assembly approved it for committee-level discussion the same week1. The bill sets a maximum of six gaming concessions, each able to operate for up to ten years, with a three-year extension possible under exceptional circumstances1.

The draft places new limits on gaming promoters, known as junkets. Each promoter will only be allowed to operate with one concessionaire, and its operations are limited to supporting concessionaires in promoting gambling activities in casinos through commissions1. Junkets are also banned from using third parties to carry out business, except in "situations deemed necessary by their partners, members of the management body or employees"1. The bill proposes penalties against illegal deposit-taking from the general public by concessionaires, their shareholders or employees, with infractions carrying up to five years in prison or a fine1.

The future of satellite casinos is a central question. About 18 satellite casinos currently operate in the city, mostly under SJM's gaming license, described as venues controlled by independent investors that lease the gaming license of an existing concessionaire1. Under the new framework, any casino in Macau must be established in an asset owned by a gaming concessionaire, and a three-year transitional period is granted for entities holding casinos under service agreements to create closer ties to one of the six future concessions1. The law provides no further detail on how that transfer of assets would take place1.

The bill also sets operator duties under Article 22. Concessionaires must seek DICJ authorization for any change to their company charter, install security surveillance equipment in casinos and keep footage for at least 60 days, undergo a DICJ operational review every three years, and inform authorities of any major financial decision1. Operators must draw up a responsible gambling plan and support local small and medium-sized companies, activities of "public interest" and fields including science and the environment1. Safeguarding national security is described as one of the legislation's main purposes, alongside economic diversification and sustainable development, and the government would have the right to terminate a concessionaire's contract for reasons including threats to national security, public interest, or breach of contractual obligations1.

"A draft of the much-expected gaming law bill was only fully revealed on January 18 following a press conference held by the Executive Council"
Macau Business, source1

Researchers told Macau News Agency that enforcement details remain unclear. University of Macau associate professor Ricardo Siu said more specifics are needed on which "major employees" face qualification checks and what counts as a "major financial decision"1. Macao Polytechnic Institute professor Zeng Zhonglu said it is "not very clear" how concessionaires and satellite casino managing entities will comply, and that completing the transition within three years would be hard to envision1.

What it means for players

The bill does not change what games are legal to play in Macau, and no source reports any change to rules for individual gamblers. The practical effects concern where and under whose license casinos operate. If the satellite casino system is upended, venues that currently run under another company's license would need to be tied to one of the six future concessions within the transitional period, which could affect which properties remain open and under what branding. The junket restrictions narrow the channel through which high-stakes players have historically arranged credit and VIP room play, since each promoter may deal with only one concessionaire and cannot use third parties except in limited cases. The bill also introduces prison terms or fines for illegal deposit-taking from the public, a practice that has affected casino customers in the past. The rules on surveillance footage retention and DICJ reviews concern operators, not players.

What happens next

The bill goes to the Legislative Assembly's second standing committee for closed-door discussion, with no sessions scheduled for January and the first committee meeting expected after the Chinese New Year holiday period1. The three-year transitional period for casino properties operating under service agreements begins under the framework set out in the bill1. No date has been reported for a final vote or for the granting of the six concessions.

For background on how Macau's rules compare with the rest of the region, see Gambling Laws in Asia: What Is Legal in 12 Jurisdictions and Can I Gamble in Macau?. The concession and licensing changes sit within the wider wave of new casino laws in Asia.

Sources1 sources
  1. Plenty of future clarifications are needed on practical enforcement of proposed gaming law - Researchers | Macau Business, macaubusiness.com