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Satellite casinos can rent out properties, rents not regulated by Gaming Law

Andrew W Scott and Pierce Chan by Andrew W Scott and Pierce Chan
Fri 27 May 2022 at 19:51
Satellite casinos can rent out properties, rents not regulated by Gaming Law
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The Second Standing Committee of the Legislative Assembly of Macau continued its discussions on the new Macau Gaming Law on Friday. On the issue of satellite casinos, Committee Chairman Andrew Chan Chak Mo revealed that landlord owners of properties containing satellite casinos can rent out their properties according to the rental law, and there will be no regulation on such rental arrangements in the gaming law.

When asked by IAG how the rent will be determined, Chan explained, “The rent is not regulated by the gaming law, but by the rental law. There is no change in the law, but some [Macau Legislative Assembly] members have asked whether satellite casinos can charge rent in the future.”

He explained that in the future satellite casino businesses can be “management companies” under the new gaming law, and after a transition period of three years after the new law comes into effect, only “management fees” can be charged. Such fees are set to cover the costs of cleaning of the venue, upkeep, management salaries and so on. If the owner of the satellite casino (that is, the management company) also happens to be the landlord of the property, rent can also be charged for the property, with such rent regulated by the rental law, as the gaming law is silent as to the subject of rent.

He also revealed that a satellite casino owner can also be a gaming agent, taking gamblers to the casino, but can only receive a commission from concessionaires, not a revenue share.

“A satellite casino owner can be a management company, can rent out their property and be a gaming agent all at the same time,” Chan said.

When asked by IAG if satellite casino rentals could be tied to the casino’s rolling turnover, Mr Chan merely emphasized that the gaming law does not regulate rentals.

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Andrew W Scott and Pierce Chan

Andrew W Scott and Pierce Chan

Born in Australia, Andrew is a gaming industry expert and media publisher, commentator and journalist who moved to Hong Kong in 2005 and then Macau in 2009, when he founded O MEDIA, one of Macau’s largest media companies and parent company of Inside Asian Gaming.

With more than five years’ experience working as a journalist in Macau, Pierce is an experienced media operator with strong skills in news writing and editing. He previously worked with Exmoo, first as a reporter covering government, gaming and tourism-related stories, then as a Deputy Assignment Editor helping set the agenda of the day. Pierce is a graduate of the University of Macau.

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