Macau's Executive Council completed its discussion of a draft amendment to the territory's gaming law on Friday January 14, the government said, sending the bill to the Legislative Assembly for review1. The draft revises Law 16/2001, the Legal Framework for the Operation of Casino Games of Fortune2.
The bill states that the number of casino gaming concessions shall be no more than six, and expressly prohibits sub-concessions1. The concession term shall generally not exceed 10 years, extendable by up to three years in exceptional circumstances1. Macau's six casino licenses expire in June this year1. The six operators currently run on a "three primary, three sub" arrangement: SJM Holdings, Wynn Macau and Galaxy Entertainment hold the primary licenses, and each has sub-concessioned to MGM China, Melco and Sands China respectively1.
The draft raises the required capital of a concessionaire to MOP 5 billion, to ensure concessionaires have sufficient financial capacity1. It raises the shareholding that a managing director who is a permanent resident of Macau must hold to 15 percent, and restricts the proportion of listed circulating shares of a concessionaire or a company that is its controlling shareholder, to tie the concessionaire's business more closely to Macau1. It also strengthens qualification review and supervision of concessionaires and persons and companies involved in gaming activity, setting out who is subject to review, the criteria for suitability and the consequences of not being suitable1.
The bill sets transitional rules for casinos currently located in property not owned by the concessionaire, allowing an existing concessionaire that regains a gaming concession to deal with those casinos over a three-year period, so that casinos comply with the requirement to be located in real estate owned by the concessionaire1. The bill is proposed to take effect the day after publication, but the provisions raising company capital and the managing director's shareholding do not apply to existing concessionaires1.
"为推动澳门特区博彩业的健康发展，完善行业监管，预防博彩可能带来的负面影响，有必要对博彩经营法作出检讨及修订。"
Gaming stocks rose in Hong Kong on January 142.
| Operator | Closing change |
|---|---|
| Sands China | up 7.13 percent |
| Wynn Macau | up 4.63 percent |
| SJM Holdings | up 3.81 percent |
| Galaxy Entertainment | up 3.44 percent |
| MGM China | up 3.07 percent |
| Melco International Development | up 2.66 percent |
What it means for players
The draft concerns who may hold a Macau casino concession and on what terms, not the rules players follow at the tables. The six-license cap and the ban on sub-concessions mean the current "three primary, three sub" structure would end if the bill passes as drafted, though the same six operators could still seek concessions. The MOP 5 billion capital requirement and the 15 percent managing director shareholding rule apply to new concessions, not to existing concessionaires1. The three-year transition for casinos in property not owned by the concessionaire could affect where some venues operate. Nothing in the sources changes casino rules for players, and the sources do not report any change to Toto Macau or New Macau Mark Six. For the wider regional picture, see the gambling laws guide.
What happens next
The bill goes to the Legislative Assembly for review1. It is proposed to take effect the day after publication, with the capital and shareholding provisions not applying to existing concessionaires1. The six licenses expire in June 20221. The sources do not report a date for the Legislative Assembly vote or for the opening of a new concession tender.
Sources2 sources
- 澳门将修例限制最多六张赌牌 经营期限不多于10年并调升资本金门槛 | Reuters, reuters.com
- 澳门博彩法草案将送立法会审议：最多发放6张博彩牌照, m.thepaper.cn
