Macau’s new bill, “Law to combat illegal gambling crimes”, states that mutuum by shops in casinos will be categorized as lending for gambling purposes.
According to the details of the bill, anyone who lends money or other resources to another person for the purpose of gambling, and in the process succeeds in obtaining a benefit for himself or another person, will be regarded as illegally lending money, and is liable to a maximum penalty of one to five years’ imprisonment.
The bill also specifically mentions “consumer lending (mutuum)”, which in casinos is presumed to be lending for the purpose of gambling.
As mentioned in the Bill, all ancillary facilities used specifically for gaming, associated facilities engaged in arts, culture, recreation and commerce, or facilities in close proximity to hotels are regarded as casinos when it comes to lending.
However, the borrower will not be penalized.
“Mutuum” describes consumer lending relationship where a person gives money or other goods to another person and that other person later returns money or goods of the same type and quality. The lender usually gains a benefit either by being involved in the gambling or charging some sort of interest or fee.
The new provision also mentions online gambling. The text states, “Anyone who operates, promotes and organizes online betting or mutual betting in the Macau SAR without authorization in accordance with the law shall be punished by imprisonment from one to eight years, irrespective of the computer systems, installations and equipment involved, and in particular, whether or not the servers are located in the Macau SAR.”
It is understood this provision essentially requires online gaming operators to geoblock Macau.
The law was discussed by the Executive Council in December last year. At that time, the President of the Executive Council, Cheong Weng Chon, pointed out that opening an account with an online gaming company was not part of the law, which regulates the operation, promotion and organization of online gambling and mutual betting.
“If a foreign company does not operate, promote or organize online betting and mutual betting in Macau, it is not covered by this law,” he said.
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