Macau to Impose Five-Year Sentences for Illegal Money Exchanges for Gambling

October 14, 2024 Macau Crime & Legal iGaming & Gambling

Macau has made it illegal to engage in unauthorized currency exchanges for gambling purposes, with offenders facing penalties of up to five years in prison for running unapproved operations.

The Second Standing Committee of the Macau Legislative Assembly has made significant strides in addressing gambling-related offenses through the introduction of a new bill, the “Law on Combating Gambling Crimes.” This legislation was given the green light on October 10, 2024 according to a report published by TDM.

The bill is poised for discussion and voting in the plenary session when the Assembly reconvenes on October 16. If approved, the law will take effect immediately following its publication.

The committee, chaired by Chan Chak Mo, has outlined a range of measures aimed at strengthening the fight against illegal gambling activities in the region. A key aspect of the proposed law is the increase in prison sentences for those convicted of gambling-related crimes. Offenders could face extended maximum detention periods, highlighting the serious stance the government is taking against these issues.

One notable element of the bill is its focus on illicit money exchange operations, which are commonly referred to as “money exchange gangs.” Under the new legislation, engaging in unauthorized currency exchange for gambling purposes can lead to a prison term of up to five years. Operating a money exchange business without proper legal approval—whether within casinos or at external locations—constitutes a criminal offense. This provision extends to any exchange that can be linked to gambling activities, regardless of where it takes place.

Law enforcement will be empowered to take decisive action against these illegal operations. If illegal currency exchanges are discovered in casinos, those involved must provide evidence that their activities are not related to gambling. Outside of casinos, law enforcement can act on credible evidence, including testimonies from witnesses, to build a case against offenders. This could involve collecting statements from tourists who observe or participate in illegal exchanges, facilitating their contribution to criminal proceedings without necessitating their appearance in court.

The bill also aims to enhance investigative techniques, allowing undercover operations to address various forms of illegal gambling. Chan explained that the proposed undercover system will enable authorities to conduct night searches of residences between 9 PM and 7 AM. This is critical for tackling sophisticated gambling operations that often employ deceptive methods to avoid detection.

In addition to targeting illicit money exchange, the legislation encompasses a wide range of gambling-related crimes. These include illicit betting schemes, online gambling, illegal lotteries, unlicensed lending, coercive gambling practices, and fraudulent gambling. Each of these activities poses significant risks to public safety and the integrity of Macau’s gaming industry.

The introduction of this bill comes amidst broader concerns about Macau’s gaming sector. According to financial forecasts from brokerage CLSA, the region’s gross gaming revenue (GGR) is projected to see a slight decline in 2024. The updated estimates suggest a 24.6 percent year-on-year growth, leading to a total GGR of MOP 228.2 billion (approximately $28.3 billion). However, this figure reflects a decrease from previous forecasts, attributed to the ongoing crackdown on illicit money exchange and a more tempered recovery from the VIP gaming sector.