The Second Standing Committee of the Macau Legislative Assembly continued discussions on the bill “Legal Framework for Operating Games of Chance in Casinos” on Tuesday, with Committee Chairman Chan Chak Mo revealing afterwards that the new law will not require junket agents to be Macau residents. However, they must be licensed and sign a contract with any junket promoters they work with.
According to details discussed at length on Tuesday, the law will specifically describe the role of agents as assisting junket operators in conducting their business. For any individual to work as an agent, they must first enter into a contract with the junket and that contract be submitted to the DICJ for approval. The list of approved agents will be published by the regulator by 31 October each year, with Chan stating, “There is a limit to the number of agents. Junkets need to apply for licenses, and agents need permission to work.”
In the past, some legislators have asked whether agents must be Macau residents to be licensed. However, “The law does not require agents to be a local resident,” Chan said. “A non-resident can be an agent because there will be a situation where the customer does not speak the same language.”
Noting that this may cause some issues around agents filing their tax returns each year, Chan said it would be up to concessionaires to manage agents, and that they must also register the contracts of anyone working within their casinos.
Asked why agents would be permitted to work with multiple junkets but junkets only allowed to partner with a single concessionaire, Chan explained that agents were essentially freelancers, allowing them to sign contracts with multiple Junket promoters. However, unlike the past, agents can no longer lend money and their income will not be calculated as a proportion of players’ winnings.
The subject of management companies was also discussed on Tuesday, with such companies to be “hired” directly by concessionaires pending approval in each instance by the Chief Executive. In a similar manner to the restriction on junkets to only collect commission rather than participate in revenue share arrangements, management companies will only be allowed to collect management fees and will no longer engage in revenue share arrangements with their partner concessionaire.
“Management companies will not be able to collect deposits from gamblers, they will only collect management fees from the concessionaire,” Chan said. “Also, they can only work with a concessionaire and cannot manage the casino’s finances.”
Discussions are due to continue on Wednesday afternoon.
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