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Macau legislature passes Law No. 7/2022 amending the casino gaming law

Macau's Legislative Assembly passed Law No. 7/2022 on 21 June 2022, capping casino concessions at six, limiting concession terms to ten years and tightening rules on junkets and management companies.

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Home › News › Macau legislature passes Law No. 7/2022 amending the casino gaming law

Macau's Legislative Assembly passed Law No. 7/2022 on 21 June 2022, amending Law No. 16/2001, the framework that has governed casino gaming in the city since 20021. The official gazette text records the law as "二零二二年六月二十一日通過" (passed on 21 June 2022)1. A press report said the full assembly debated the bill in detail for more than two hours before the vote, and that the law takes effect the day after publication2.

The amended law keeps the number of casino concessions at a maximum of six and bans sub-concessions1. Concession terms must be set in the concession contract and cannot exceed ten years, with a possible exceptional extension of no more than three years in total1.

Junket rules tighten sharply. Each junket operator may work with only one concessionaire and may only earn commission, with no revenue sharing1. A junket license is issued by the Secretary for Economy and Finance and cannot be transferred1. Commission paid to junkets carries a 5 percent withholding tax, which the Chief Executive may partially exempt by up to 40 percent of that rate for up to five years on public interest grounds1. Management companies may only be paid a management fee and may not share casino revenue or receive commission1.

The law also sets out duties and penalties. Concessionaires must contribute 2 percent of gross gaming revenue annually to a public fund for cultural, social, economic, educational, scientific, academic and charitable activities, and 3 percent to urban development, tourism promotion and social security1. The special gaming tax rate stays at 35 percent, keeping the effective rate at 40 percent3. A commentary said gaming taxes rose slightly from 39 percent to 40 percent4. Concessionaires face a Gaming Inspection and Coordination Bureau review of overall contract compliance every three years1.

"經營娛樂場幸運博彩的批給數目最多為六個"
Gaming Inspection and Coordination Bureau, Law No. 7/2022, Article 7(2)1

What it means for players

The six-concession cap and the ten-year term mean the operators running Macau's casinos are set to be reselected under new contracts, and the law bars transferring or encumbering a concession in any form1. Junket-run VIP rooms lose their revenue-sharing model, which a commentary said would sharply cut junket income and its share of operator revenue3. Three "satellite" casinos had already announced closures in June 2022, and the final text allows existing operator-satellite contracts to run for the first three years of the new law, after which satellites may continue by hiring a management company3. For visitors, the rules on entry to casinos, working inside them and gambling are left to separate regulations, which the law says will be set by dedicated rules1.

What happens next

The law took effect the day after publication2. Concessionaires must submit to suitability checks by the Gaming Inspection and Coordination Bureau, and the Chief Executive may set a period for a concessionaire found unsuitable to remedy the position1. The law states that supplementary regulations will set the rules needed to implement it1. No date for the next concession tender is given in the sources.

For background on how gambling is regulated in the city, see Can I Gamble in Macau? and Rules Inside Macau Casinos. For the wider regional picture, see Gambling Laws in Asia: What Is Legal in 12 Jurisdictions.

Sources4 sources
  1. 澳門特別行政區 政府博彩監察協調局, dicj.gov.mo
  2. 澳門通過新《博彩法》 賭牌上限6個批給期不多於10年|即時新聞|產經|on.cc東網, hk.on.cc
  3. 澳門「國安賭場」上線啦?聽命北京的轉型《博彩法》 | 政經角力 | 轉角國際 udn Global, global.udn.com
  4. Macau's New Gaming Law, harris-sliwoski.com