Macau’s Gaming Credit Law Approved by Legislative Assembly

A new gaming credit law that forbids casino management businesses from offering credit and provides a penalty system for violations was approved by Macau’s Legislative Assembly on Thursday afternoon.

The Macau Executive Council first revealed changes to the prior measure in April and forwarded it to the Legislative Assembly, where it was unanimously approved on the first vote.

The committee of the Legislative Assembly will now discuss it.

According to the “Legal regime of credit concession for gambling in casinos” bill, only junkets and concessionaires themselves are permitted to offer credit to players, not casino management businesses like those running satellite casinos on their concessionaires’ behalf. Additionally, it establishes a new monitoring agency, a penalty system, and a new legislation governing the agreements between gaming junkets and concessionaires.

According to this penalty scheme, a concessionaire will be subject to a punishment ranging from MOP$2 million to MOP$5 million (US$246,000 to US$615,000) if it conducts credit operations through another firm or transfers credit qualifications in any way to a third party. A junket will be subject to a fine of between MOP$600,000 and MOP$1.5 million (US$109,000 and US$185,000) if it violates the appropriate legislation.

Lei Wai Nong, the secretary for economy and finance in Macau, stated on Thursday that the new law only represents a “technical adjustment” and does not alter the overall legal system.

The government expects that the gaming credit industry can grow more sustainably, he said, which is why this law was passed.

Legislator Jose Pereira Coutinho expressed his worries about the future of the junket business and stated that there are currently only about 10 licensed junkets in operation.

“Some junkets have reflected to us that [the junket business] is now declining and sinking,” he claimed. “Perhaps there will only be three gambling junkets remaining when we see the finance secretary the next time. Does the government intend for this to occur?

Government representatives made no comment.