Gaming law amendment bill first draft approved at Legislative Assembly, ‘satellite casino’ issue raises doubts

January 25, 2022 Crime & Legal Industry Updates

The Legislative Assembly has passed the draft gaming law amendment bill this afternoon, with legislators questioning Secretary for Economy and Finance Lei Wai Nong on how authorities will assure resident work positions from local ‘satellite casinos’ and VIP rooms will be protected under the proposed amendments.

The much-expected bill was published on January 18, following a press conference held by the Executive Council and was on the agenda for discussion and vote at the AL today (Monday).

The draft bill sets a maximum of six gaming concessions that can operate for up to ten years, with a 3-year extension possible under exceptional circumstances. The amendment proposal also includes a number of new regulations for both casino operators and gaming promoters.

Once the bill is approved at first reading, it will be sent to one of the legislature’s standing committees for detailed article-by-article review before being sent back to the Legislative Assembly plenary for second reading approval.

The bill received 30 votes in favour and one against by legislator Ron Lam U Tou who contested the lack of information provided by the draft on how the satellite casino issue would be dealt with, remembering that there will not be a public debate during the committee phase discussion, which is held behind close door sessions.

‘Satellite casinos’ are venues controlled by independent investors, but who lease on the gaming licence of one of the existing concessionaires, with about 18 satellite casinos currently operating in the city, mostly under SJM’s gaming license.

Under the city’s new regulatory framework any casino operating in Macau will have to be established in an asset that is owned by a gaming concessionaire, implying the current ‘satellite casino’ system would have to be upended.

A three-year transitional period will be granted for the entities responsible for properties holding casinos operating under service agreements to create closer ties to any one of six concessions to be granted in future, with no more details provided in the law on how that transfer of assets would take place.

Before the final voting, almost all legislators who decided to intervene in the plenary session raised the issue of satellite casinos, how that transition would proceed and how resident workers directly employed by the managing entities would maintain their employment.

‘We know there are at least 18 satellite casinos that will be impacted, involving tens of thousands of employees […] We have many people that are unemployed, can concessionaires absorb these unemployed workers? Could a ruling be added to the bill that new concessionaires have the responsibility to hire these unemployed residents?,” legislator Chan Se Wai inquired.