Macau Legislature Approves Enhanced Illegal Gaming Law to Tackle Gambling-Related Crimes

October 17, 2024 Macau Crime & Legal

The Legislative Assembly (AL) of Macau has unanimously approved a new illegal gaming law aimed at addressing various illicit activities within the gaming industry. This legislation is part of a broader effort to modernize gaming regulations in the region, following several other laws related to the industry in recent years.

The bill, which was approved on October 16, 2024, criminalizes specific gaming-related activities, notably illegal currency exchange. It also imposes penalties on all activities associated with side and parallel betting.

Chan Chak Mou, the president of the Second Standing Committee of the AL, highlighted that this new law standardizes the treatment of illegal gambling activities, regardless of whether they occur inside or outside casinos. This represents a significant shift from previous regulations, which did not address these distinctions comprehensively.

One of the key focuses of the new law is to tackle crimes related to parallel betting and side betting. These practices have been a growing concern for regulators, prompting the need for stricter measures. The legislators were also attentive to online gaming activities, although Chan pointed out that the new law does not introduce significant changes compared to the previous one. Nonetheless, he emphasized that the updated legislation reflects developments within the industry, promoting necessary changes in this area.

A noteworthy amendment in the final version of the bill concerns illegal currency exchange for gambling purposes. This activity is now classified as a crime, whether it takes place in a casino or elsewhere. Chan clarified that the law penalizes those who engage in such exchanges, but does not impose penalties on casino patrons. This distinction aims to protect individuals who may unknowingly participate in illegal activities.

The law also introduces stricter regulations regarding money loans for gambling. These measures are designed to deter financial exploitation and protect vulnerable individuals from the risks associated with gambling debts. The absence of extensive discussion or debate among lawmakers during the approval process indicates a strong consensus on the importance of these regulatory changes.

Despite the overwhelming support for the new law, some lawmakers raised concerns about specific provisions. According to the Macau Daily Times, lawmaker Ron Lam questioned the government regarding new regulations concerning lotteries. Under the new law, the exploitation of lotteries now carries a penalty of up to two years’ imprisonment. Lam expressed particular concern about the sale of the Hong Kong Lottery – Mark 6, which has been a sensitive topic in Macau for many years.

In response, Secretary for Administration and Justice, André Cheong, clarified that the law applies to all forms of foreign lotteries and any potential local variations. He emphasized that the legislation targets the commercial exploitation of these activities rather than informal arrangements, such as friends helping each other buy lottery tickets. However, Lam remained unconvinced and requested a separate vote on this specific article, arguing for a clearer stance from the government.

Lam’s insistence on addressing the sale of the Hong Kong Lottery stems from a desire to prevent legal ambiguities that could ensnare residents. His concerns reflect broader issues surrounding gambling regulations in Macau, particularly as the region grapples with balancing the interests of the gaming industry and the need for responsible governance.

The Illegal Gambling Law introduces several new criminal provisions, including a stringent prohibition on what is often referred to as “under-the-table betting.” Offenders could face up to eight years in prison for violating this rule.

The government’s position is that previous instances of “under-the-table betting”—likely referencing the recent trials involving Suncity Group and Tak Chun Group—have significantly hindered the growth of the gaming industry. To address this, there is a clear need to strengthen the legal framework to explicitly ban such practices.

Additionally, the law empowers criminal investigation officers by granting them new authorities for evidence collection, including “night-time evidence gathering” and “undercover operations” targeting illegal gambling activities.

New amendments to the bill also criminalize “money exchange gangs.” Those who facilitate illegal currency exchanges for gambling purposes will now face penalties of up to five years in prison.