Macau Passes New Gaming Credit Law, Effective August 1st

With a unanimous vote, the Macau Legislative Assembly passed historic legislation that would change the way casino credit operations are conducted and take effect on August 1st.

Known formally as the “Legal Regime for Granting Credit for Games of Chance in Casinos,” the new law imposes stringent guidelines to guarantee transparency and responsibility in the gaming credit industry.

The new regulation states that only gaming operators may give gamblers chips as credit; junkets are not allowed to handle credit transactions directly.

Nonetheless, casino owners can take part in junkets through agency appointments or outsourcing agreements, which let them process credit transactions in exchange for commissions.

The Secretary for Economy and Finance of Macau must authorize any changes made to agency agreements between casino operators and junkets.

In addition, the Secretary may require modifications to contract terms in light of applicable laws and public policy.

Regulations permit the Chief Executive to revoke gambling operators’ eligibility for credit business in the case of noncompliance, citing significant public interest.

Notably, even if a casino operator’s license is revoked, any credit that was granted in accordance with the law remains a legally enforceable liability.

The Act also mandates that gaming operators establish robust risk control procedures, maintain thorough documentation of credit activity, and employ suitable channels for resolving customer complaints in order to lower credit risks.

The passage of this historic law sets a new standard for responsible credit practices in the area and reflects Macau’s dedication to enhancing regulatory control and safeguarding the integrity of its gaming industry.

Original Story by: Asian Gaming Brief