Macau gov’t proposes ban on licensed junkets extending credits to gamblers

The Macau government is pushing for substantial changes to the regulations that govern the gambling sector. One such proposal is to forbid authorized junkets within the city from autonomously extending credit to players who frequent neighboring casinos.

The chair of a standing committee of the Macau Legislative Assembly, Chan Chak Mo, disclosed the specifics of this arrangement on Friday during a closed-door meeting to review a proposed law on the subject.

The initial legislation, formally referred to as the “legal regime of credit concession for gambling in casinos,” restricted credit eligibility to casino concessionaires and junkets. However, it was also required that junkets prepare a formal contract before extending credit, specifically with any casino concessionaire with whom they had affiliations.

The most recent development in this legislative process is the proposition by the government of Macau to eliminate the provision that permits junkets to issue gaming credit independently. According to Mr. Chan, the new approach attempts to preserve the existing regulations, permitting junkets, also known as gambling promoters, to continue providing patrons with advice and service in exchange for commissions through an agent agreement with casino concessionaires.

The committee meeting was attended by Adriano Marques Ho, the director of the Gaming Inspection and Coordination Bureau, the city’s casino regulatory agency, and Lei Wai Nong, Macau’s Secretary for Economy and Finance, who oversees industry regulations. However, no statements were issued by them regarding the public.

Mr. Chan claims that the government’s approach “deletes” the existing laws that permit gaming promoters to issue gaming credit in their names. It was explicitly stated that the objective of the plan is to establish a more comprehensive structure for overseeing and regulating credit related to gambling. This implies that casino concessionaires, being duly licensed gaming establishments, possess a more robust framework in comparison to alternative potential issuers.

Recent years have seen a decline in the quantity and variety of activities held in junkets in Macau; however, the proposed modifications would represent a substantial shift in the regulatory environment. The committee approves the government’s most recent proposal regarding wager credit regulations without any objections being raised. The legislation will continue to be deliberated upon until February, and a concluding reading is slated for the plenary session of the assembly.

As per Mr. Chan’s estimation, the legislative process’s schedule could cause such legislation to be declared pending ultimate approval by the Legislative Assembly for a maximum of four months. This suggests that the new regulations might not go into effect until the middle of the following year.

Original story by: GGRAsia