Macau’s Legislative Assembly passed a new gaming credit law on Thursday afternoon which prohibits casino management companies from providing credit and establishes a penalty mechanism for breaches.
Amendments to the previous bill were first announced by the Macau Executive Council in April and sent to the Legislative Assembly where it was passed unanimously on the first vote.
It will now be discussed in the Legislative Assembly committee.
The bill, titled “Legal regime of credit concession for gambling in casinos”, stipulates that casino management companies, such as those operating satellite casinos on behalf of concessionaires, cannot extend credit to players, with only junkets and concessionaires themselves able to do so. It also adds a new law regulating the contracts between gaming junkets and concessionaires, introduces a new monitoring authority and provides for a penalty system.
Under this penalty system, if a concessionaire conducts credit operations through another entity or transfers credit qualifications in any form to another person, it will be liable for a fine of between MOP$2 million to MOP$5 million (US$246,000 to US$615,000). If a junket violates the relevant regulations, it will be liable for a fine of between MOP$600,000 and MOP$1.5 million (US$109,000 and US$185,000).
Macau’s Secretary for Economy and Finance, Lei Wai Nong, said Thursday that the new law was only a “technical adjustment” and does not change the entire legal framework.
“This law was enacted because the government hopes that the gaming credit business can develop more healthily,” he said.
Legislator Jose Pereira Coutinho, meanwhile, outlined his concerns for the future of the junket industry, claiming there are only around 10 licensed junkets currently operational.
“Some junkets have reflected to us that [the junket business] is now declining and sinking,” he said. “Maybe the next time we see the Finance Secretary, there will only be three gaming junkets left. Does the government want to see this happen?”
Government officials did not respond.
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