Macau casino operators to be subject to new shareholding stipulations

June 14, 2022 Macau Crime & Legal Industry Updates

n Macau and the draft gaming bill currently being scrutinized by lawmakers will reportedly contain a clause that is to ban any entity holding a casino concession or more than 5% of any such firm’s shares from being directly involved with another locally-licensed operator.

According to a report from Inside Asian Gaming, this new restriction was revealed as the legislation, which is officially entitled Amendment to Law Number 16/2001, is with a sub-committee for behind-closed-door discussions on potential alterations or additions. The source explained that this fresh measure is also a change from previous language that would have allowed licensed casino operators and their investors to directly hold up to 5% stakes in any other concessionaires.

Slight shift:

Local lawmaker Chan Chak Mo is reportedly leading the draft gaming bill deliberations and he proclaimed that the new text is similar to an older directive only with the modification that ‘concessionaires as well as their shareholders holding 5% or more of their respective capital stock may not directly hold shares in another concessionaire in their own name.’ However, the legislator purportedly declared that this prohibition is not set to apply to entities that indirectly possess such interests including those retained ‘in the form of a fund’ so long as it does not surpass the 5% threshold.

Public proscription:

For its part and GGRAsia reported that this latest update will moreover include
language
prohibiting casino operators licensed in Macau from listing their shares publicly including with the Hong Kong bourse. This source detail that such an injunction is to be placed on any firms hoping to be granted one of the enclave’s upcoming ten-year concessions at the end of December.