Macau’s gaming regulator told a public consultation on Monday that a proposed amendment to the city’s gaming law that would see a government representative appointed to each concessionaire would emulate the system currently in place for some public utilities and other concession holders.
In comments that should further allay concerns over the Macao SAR Government’s plans for the gaming law, DICJ Subdirector Lio Chi Chong told attendees of the fourth and final public consultation that the proposed government representative was nothing new and would follow the system already regulated under Decree-Law 13/92/M.
Decree-Law 13/92/M defines this person as an individual appointed by the government to supervise and oversee the activities of private companies that: (i) were granted a concession contract to operate public utilities, (ii) use government owned assets, (iii) are financed by the government, or benefit from financing secured by the government, (iv) operate as a legal monopoly or (v) are granted a privilege not provided under general law.
“The government representative is already regulated under Law 13/92/M,” Subdirector Lio said. “Now we are trying to bring in more opinions, we are not talking about a new system.”
With the exception of casino concessionaires, most concession contracts in Macau, including contracts for the operation of public utilities and other forms of gaming, such as sports betting and wagering on horse races, designate one government representative charged with overseeing the activities of the company related to the concession.
Their key duties are to supervise the compliance of the concessionaire with its legal and contractual obligations and to protect public interest within the activities pursued by the concessionaire. IAG understands that, under the existing legal framework, the government representative has neither executive nor voting powers within the company it is designated to.
However, concerns had been raised because the government’s consultation document on gaming law clearly uses the word “control”. Subdirector Lio moved to quash those concerns on Monday, insisting this was not the government’s plan.
As previously reported by Inside Asian Gaming, the appointment of a government representative has been seen before in Macau with SJM Holdings parent company STDM having had a designated representative when it was Macau’s monopoly casino operator pre-2002. Sports betting concession Macau SLOT Co Ltd and horse racing concession Macau Jockey Club also remain subject to such a provision to this day.
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