O que diz a lei proposta pelo Governo (a partir de 14/1/21)
jun22
Oanalista de jogo Ben Lee considera que a decisão “inesperada” de aumentar em 1 por cento os impostos indirectos em Macau vai “criar dúvidas e incerteza” entre os interessados em novas concessões, a partir de 2023.
Uma comissão da Assembleia Legislativa de Macau terminou na quarta-feira a discussão da nova lei do jogo, que deverá ser votada, no plenário, na generalidade, a 21 de Junho.
A versão final da proposta de lei que regula os casinos em Macau prevê uma subida de 1,6 por cento para 2 por cento do actual imposto sobre as receitas do jogo, entregue à Fundação Macau para fins culturais, educacionais, científicos, académicos e filantrópicos.
https://hojemacau.com.mo/2022/06/17/analista-diz-que-subida-dos-impostos-em-macau-cria-duvidas-a-investidores/
jun22
An article in the latest draft of Macau’s gaming law amendment bill, published on Wednesday, sets the tax payable on casino gross gaming (GGR) at 40 percent, although the law gives an incumbent Macau chief executive (CE) the discretion to reduce such tax burden by up to five percentage points for “reasons of public interest”, “namely” attracting “customers from foreign countries”.
The latter discretionary power under the new law was mentioned by veteran Macau legislator Chan Chak Mo, on the sidelines of the Legislative Assembly in mid-May, after a closed-doors meeting with government officials. He heads a committee tasked with scrutinising the new law.
Nonetheless several experts on Macau gaming law, that were consulted by GGRAsia on Wednesday, said the latest draft has the potential to increase the total GGR tax burden on operators, because of a change of wording: from “up to” 40 percent under the existing law; to “equal to” 40 percent under the gaming law amendment bill.
https://www.ggrasia.com/macau-40pct-ggr-tax-in-new-law-ce-can-cut-up-to-5-points/
jun22
A nova versão do diploma da lei do jogo propõe agora que as concessionárias, bem como os accionistas titulares de valor igual ou superior a cinco por cento,fiquem proibidas de deter directamente acções de outra empresa concessionária, de forma a que o Governo possa “evitar conluio das concessionárias” e “fortalecer a sua competitividade”. Além disso, a proposta actual proíbe também a entrada das concessionárias em bolsasde valores, eliminando a ressalva anterior sobre a aprovação do Chefe do Executivo. Segundo o presidente da 2.ª Comissão Permanente, o parecer vai ser assinado pelos membros da Comissão amanhã, podendo a proposta ser apreciada em reunião plenária na próxima terça-feira. As empresas do jogo registaram ontem uma queda no preço de acções na Bolsa de Valores de Hong Kong.
https://pontofinal-macau.com/2022/06/14/nova-lei-do-jogo-preve-proibicao-da-sobreposicao-de-detencao-de-accoes-e-adesao-em-bolsas-de-valores/
The bill doesn’t offer commentary on whether a listed company associated with a Macau concession entity would be able to hold such a cross-stake in a rival listed entity associated with another Macau concessionaire. Macau’s six concessionaires are respectively associated with firms listed either in Hong Kong, or the United States.
https://www.ggrasia.com/bar-on-direct-stake-in-rival-macau-concession-entity-bill/
Apparent third version new Macau gaming law says no direct cross-shareholdings between concessionaires or their 5% shareholders, indirect ok
ma22
Se uma concessionária despedir trabalhadores devido ao fecho de um casino, por um período de um mês a um ano devido ao incumprimento de obrigações, essas situações serão consideradas como despedimentos sem justa causa, acrescentou o Governo na nova versão da proposta de revisão da lei do jogo. A 2ª Comissão da AL prevê que o parecer sobre a proposta poderá ser assinado até 10 de Junho
https://jtm.com.mo/local/trabalhadores-dos-casinos-garantias-reforcadas/
ma22
Macau is willing to consider cutting as much as 5 percentage points from the aggregate effective tax rate on casino gross gaming revenue (GGR), if the city’s casino industry is able to bring in players from outside China, said on Friday a senior Macau legislator.
Chan Chak Mo made the comment on the sidelines of the Legislative Assembly, when explaining some Macau government proposed amendments to the city’s gaming law amendment bill currently passing through the assembly.
https://www.ggrasia.com/macau-mulls-ggr-tax-cut-if-casinos-attract-foreign-players/
mai22
Macau’s Legislative Assembly (AL) has confirmed that concessionaires will be allowed to accept player deposits under the city’s revised gaming laws.
The Second Standing Committee of the Legislative Assembly continued discussions on the bill “Legal Framework for Operating Games of Chance in Casinos” on Friday, largely focusing on the issue of player deposits and whether concessionaires and junkets will be permitted to assume such liabilities. The members were informed by the Legislative Assembly’s advisors that it is legally permissible for concessionaires to receive deposits, while Committee Chairman Chan Chak Mo stated that this will continue to be the case under the revised gaming law.
“Concessionaire are allowed to accept deposits and [assume that liability],” Chan said, “because logically they can only issue chips with gamblers if they [are empowered to] accept deposits.”
https://www.asgam.com/index.php/2022/05/07/macau-legislative-assembly-confirms-only-concessionaires-allowed-to-accept-player-deposits/
mar22
Minimum income – a stealthy gaming tax rate hike?
Imagine if the CE had issued a dispatch setting the minimum annual gross income based on his estimate back in late December of MOP$130 billion GGR for 2022. And imagine 2022 did in fact turn out to be a MOP$84 billion GGR year – the current run rate. A special gaming tax of 35% of MOP$130 billion is MOP$45.5 billion, which represents 54% of MOP$84 billion.
Under this horror scenario for the concessionaires, the effective special gaming tax rate would be increased from 35% to 54%. Ouch!
Now some might speculate the new Article 20 provision is not about increasing the gaming tax rate by stealth but is instead about efficient table utilization. It might be a mechanism to encourage concessionaires to give tables they are not currently using back to the government, so that they don’t need to worry about generating a minimum GGR on tables gathering dust in a back room somewhere.
I certainly hope this is the case, but it would be nice to have some clarity from the government on this. And the way the law currently stands, the potential is there – in theory at least – for the concessionaires to suffer a very nasty surprise.
https://www.asgam.com/index.php/2022/03/25/macau-gaming-law-series-part-8-minimum-income-a-stealthy-gaming-tax-rate-hike/
mar22
Several gaming labour groups affiliated to the Macau Federation of Trade Unions – the largest local labour organisation – said in comments aired on Tuesday they feared for the employment prospects of workers at the city’s so-called satellite casinos, amid changes proposed for that market segment under Macau’s gaming law amendment bill.
The concerns were in a letter sent to the Legislative Assembly. The document was circulated to local media on Tuesday.
Macau satellites are venues controlled by independent investors, but respectively piggyback currently on the gaming licence of one of the existing concessionaires. Satellites will still be permitted under Macau’s proposed new regulatory system, but they will each be given a three-year grace period to tie the ownership of their gaming premises to any of the city’s six concessionaires, states the city’s gaming law amendment bill.
https://www.ggrasia.com/macau-unions-fear-for-satellite-casino-jobs-in-law-revision/
A Federação das Associações dos Operários de Macau (FAOM) entregou ontem uma carta na sede do Governo a exigir uma discussão mais alargada sobre matérias relacionadas com a proposta de lei de jogo, actualmente em análise na especialidade na Assembleia Legislativa (AL).
Lam Pek Leng, presidente da Associação dos Empregados das Empresas de Jogo de Macau, afecta à FAOM, disse que é importante debater as questões em torno dos postos de trabalho após o encerramento dos casinos satélite, assim como o respeito pela segurança nacional por parte das operadoras e o cumprimento da responsabilidade social. https://hojemacau.com.mo/2022/03/23/lei-do-jogo-faom-exige-mais-discussao-sobre-garantia-de-empregos/
mar22
O QUE NAO DIZ
One aspect of the new Macau gaming law which isn’t getting much airplay – publicly at least – is that of “reversion.” This is a massive issue involving a tussle between the Macau government and the six concessionaires over billions of dollars in assets. Behind closed doors, it is a subject on the lips of all top C-level executives around town, because so much money stands to change hands – both at the end of the current concessions and for years to come.
When the Macau government liberalized the casino gaming industry in 2001, it set up a classic BOOT (Build, Own, Operate and Transfer) model. This is a great way for governments to develop major infrastructure projects at zero cost. Under BOOT, a government creates a PPP (public private partnership) in which a private company builds, owns and operates the infrastructure project, usually on land granted to it by the government. The private company gets an agreed period – often decades – to recoup the initial outlay and make a profit. After that, the infrastructure project is transferred back to the government either free of charge or at some contractually agreed amount.
https://www.asgam.com/index.php/2022/03/11/macau-gaming-law-series-part-5-reversion-of-gaming-areas-a-problem-no-one-is-talking-about/
mar22
limite fichas
Apesar de estarem a ser ofuscadas por questões como o futuro dos “casinos-satélite”, as novas disposições sobre as fichas de jogo preconizadas na proposta de alteração da lei do regime jurídico do sector poderão revelar-se problemáticas para os casinos, segundo adverte Andrew Scott, num artigo publicado no portal da revista “Inside Asian Gaming” (IAG). Para o especialista no jogo, a imposição de limites ao número de fichas poderá ter “consequências negativas não intencionais”.
A proposta estabelece, por um lado, que “a aquisição de fichas, por parte das concessionárias, está obrigatoriamente condicionada à autorização da Direcção de Inspecção e Coordenação de Jogos” e, por outro, que “a quantidade das fichas pretendidas a ser postas em circulação” carece do aval do Secretário para a Economia e Finanças. Além disso, as concessionárias estão obrigadas a garantir a cobertura, por dinheiro ou título de crédito, da fichas em circulação.
Andrew Scott acredita que a intenção legislativa passa por assegurar a “gestão e o controlo da responsabilidade das fichas pendentes”, que constitui “uma das formas menos conhecidas dos casinos ganharem dinheiro”. “Os jogadores comprarão fichas e, por vários motivos, simplesmente não as sacarão – permitindo que o casino fique com o dinheiro! As razões são muitas e variadas, por exemplo, alguns jogadores gostam de guardar fichas como lembranças ou presentes”, refere, confessando que ele próprio ainda mantém uma ficha no valor de 5.000 dólares australianos (cerca de 29.500 patacas ao câmbio actual), que comprou no casino Crown em Melbourne na década de 1990, “simplesmente porque tem o número de série ‘00002’”.
https://jtm.com.mo/local/limite-de-fichas-podera-ser-problematico/
mar22 (O QUE NÃO DIZ) POKER e SPORTS BETTING
In the February issue of Inside Asian Gaming, David Green noted the absence of any legislation around sports betting among amendments to Macau’s gaming law currently being debated by the Legislative Assembly.
This suggests there will be no change to the status of legal sports betting in Macau, which under the current gaming law is not permitted in the SAR’s casinos because it is classified as a “game of chance offered to the public.” Under this current law, games classified as “games of chance offered to the public” such as sports betting, bingo, lucky draws and lotteries differ from those more simply called “games of chance” – such as traditional casino games like baccarat or blackjack – due to the latter being permitted inside casinos.
Ironically, while the Macau government revealed last June that the license held by Macau’s sole sports betting provider, Macau SLOT Co Ltd, would no longer be exclusive, the absence of amended sports betting legislation for casinos makes it highly unlikely that any new sportsbook operators will enter the Macau market.
This, notes Green, represents a missed opportunity to diversify Macau’s gaming offering. But it’s not the only missed opportunity.
Poker, once a popular pursuit in Macau, has gradually disappeared from all of the city’s casino floors in recent times – a victim of the government’s strict table cap. Although the table cap, which will for the first time be officially recognized under Macau’s amended gaming law, is designed to maintain control over the growth of the industry, from an operator’s perspective it also places a premium on eking out maximum value from each table allowed within a property. This means higher yielding games like baccarat and blackjack will always win out over poker.
https://www.asgam.com/index.php/2022/02/26/editorial-macaus-missed-opportunity/
mar22
Almost everyone connected to the Macau gaming industry has heard of the infamous table cap – it was the catalyst for innovations such as the LT Game stadiums where 50 players betting at electronic stations on a game dealt nearby with real cards counted as just one gaming table, and the so-called siamese tables at the then-Sands Cotai Central (now Londoner) where two baccarat tables were joined at the hip so they would count as one.
But Article 22D of the new draft Macau gaming law has introduced a new cap concept – the chip cap. Article 22D (1) reads, “Concessionaires must obtain permission from the Gaming Inspection and Coordination Bureau before they can purchase chips,” while article 22D (2) reads, “The number of circulating chips must be approved by the Secretary of Economy and Finance, and a maximum number of circulating chips may be set.”
I think I am safe in assuming the policy objective behind these provisions is management and control of the outstanding chip liability. The outstanding chip liability is one of the lesser-known ways casinos make money. Players will purchase chips, and then for a variety of reasons simply not cash them in – allowing the casino to keep the money! The reasons are many and varied, for example some players like to keep chips as souvenirs or gifts. Some players physically lose chips. I am still holding on to an AU$5,000 chip I purchased from Crown casino in Melbourne in the 1990s, merely because it has the serial number “00002” on it! I sometimes muse about who on earth got 00001 … https://www.asgam.com/index.php/2022/03/09/macau-gaming-law-series-part-4-does-the-chip-cap-need-a-rethink/
mar22
Macau Gaming Law series part 3: Problematic consequences of the satellite purge
fev22
SATELLITES
It has been more than 20 years since Law No. 16/2001 was enacted as a legal framework for the Macau gaming industry. With the gaming concessions (and sub-concessions) set to expire in June 2022, the Macau government has been beefing up its gaming regulation and enforcement over the past years, and the latest amendments to the city’s gaming law are currently being considered by the Legislative Assembly. Among other changes, third-party promoted casinos will be outlawed under the new gaming law. This draft provision may also affect some self-managed casinos not wholly owned by the incumbent gaming operators. Ryan Ho https://www.asgam.com/index.php/2022/02/26/survival-of-the-fittest/
ev22
eSports
In the February issue of Inside Asian Gaming, David Green noted the absence of any legislation around sports betting among amendments to Macau’s gaming law currently being debated by the Legislative Assembly.
This suggests there will be no change to the status of legal sports betting in Macau, which under the current gaming law is not permitted in the SAR’s casinos because it is classified as a “game of chance offered to the public.” Under this current law, games classified as “games of chance offered to the public” such as sports betting, bingo, lucky draws and lotteries differ from those more simply called “games of chance” – such as traditional casino games like baccarat or blackjack – due to the latter being permitted inside casinos.
https://www.asgam.com/index.php/2022/02/26/editorial-macaus-missed-opportunity/
fev22
SATELITES
Macau’s satellite casinos were the biggest losers in the government’s gaming law amendments, which are currently under review in legislative committees. The wording of the amendments state the properties must be owned by the concessionaire.
In this week’s Face-to-Face interview, Success Universe Group Deputy Chairman Hoffman Ma discusses the impact this has had on the company’s Ponte 16 property.
He explains expansion plans are currently on hold while the group waits for clarity. He also discusses the likely trajectory for recovery in Macau and how the group has been pivoting to target mass market players.
https://agbrief.com/intelligence/25/02/2022/satellite-casinos-in-limbo-as-legislators-study-gaming-law/?utm_source=Asia+Gaming+Brief&utm_campaign=91db8762a5-&utm_medium=email&utm_term=0_51950b5d21-91db8762a5-69255637&ct=t()&goal=0_51950b5d21-91db8762a5-69255637
fev22
JUNKETS
The President of the Macau Association of Gaming and Entertainment Promoters says licensed junkets must revert back to their original business model if they are to have a future under proposed amendments to Macau’s gaming law.
Kwok Chi Chung spoke with Inside Asian Gaming on Monday after representatives of the city’s junket industry met with the Gaming Inspection and Coordination Bureau (DICJ) late last week to gain a better understanding of the new gaming law and how it will impact the operations of licensed promoters.
While Kwok said a number of key issues – such as the role of agents and a proposal to limit each junket to working with a single casino concessionaire – have yet to be clarified, he acknowledged that junkets would likely need to revert back to their original business model of only receiving commission on chips rolled at gaming tables rather than through revenue share agreements. https://www.asgam.com/index.php/2022/02/22/macau-junket-rep-says-vip-promoters-must-change-business-model-to-survive-after-first-meeting-with-dicj-on-gaming-law/
fev22
Representatives from Macau’s gaming regulator met on Friday with the leadership of the city’s Association of Gaming and Entertainment Promoters, to discuss details related to Macau’s gaming law amendment bill. The meeting was confirmed to local media by Kwok Chi Chung, president of the junket trade group.
During the meeting, Macau’s Gaming Inspection and Coordination Bureau – also known by its Portuguese acronym DICJ – received feedback from junkets regarding the amendment bill, including some expressions of doubt regarding the implementation of certain proposed provisions. According to Mr Kwok, the DICJ representatives took note of the opinions presented by the group, but made no mention of potential changes to the bill
https://www.ggrasia.com/macau-regulator-junket-trade-reps-meet-on-gaming-bill/
fev22
managing director:
The Gaming Law, as in force, establishes the principle of delegation to a Managing Director (“MD”), whereby the management of the casino gaming operators is compulsory delegated to an MD. Several qualifying conditions apply to the MD: be a Macau permanent resident, hold at least 10 per cent of the respective casino operator’s share capital, be considered suitable (and remain suitable during his tenure), and not be impeded by not being, in particular, a worker of the Macau Special Administrative Region’s Public Administration or a member of the Executive Council. The delegation and its terms are subject to prior authorization from the government under penalty of nullity. According to the Explanatory Note to the gaming law draft proposal submitted in 2001 to the Legislative Assembly, the alternative to the principle of delegation to an MD was to provide for a “restriction on the percentage of the share capital of the concessionaires operating casino games of chance to be held by shareholders, not resident in the Region.”
https://www.macaubusiness.com/opinion-the-chosen-one/
jan22
Junkets in Macau aren’t dead yet, but they are on life support, argues Carlos Simões, a partner with law firm DSL, who takes us through some of the momentous events of recent months and asks where next?
https://agbrief.com/news/macau/31/01/2022/junkets-operators-one-activity-two-legal-systems/
jAN22
ALIDAD TASH Details are scant as to how this might happen, but Tash said he doesn’t see the satellites disappearing.
“I think it’s quite reasonable to assume that the satellite casinos, which are very politically powerful, will be able to find a day to wriggle out of the three-year commitment, either by extending it or convincing the government to remove the provision,” he said, pointing to the fact that initially in 2002 Macau had only envisaged three concessions, but somehow that morphed into six.
One of the government’s key concerns is job losses in the local community, which is likely to be quite a persuasive force when arguing the case for the satellite casinos, Tash said.
During the first reading of the bill in the Legislative Assembly, the majority of speakers who chose to intervene, commented on the impact on the employment situation in Macau.
This was probably also a factor in deciding not to outright ban the city’s junket operators, instead imposing more onerous restrictions on them that may lead to a more phased withdrawal.
Under the new regulations, revenue-sharing accords between junkets and operators have been banned. One junket can only work with one operator, while they are no longer able to operate VIP rooms.
Again, the details as to how this will work in practice are scarce and Tash argues it could create some operational challenges.
“Speaking as a gaming operator who has headed operations in the past, how are they going to handle the various chipsets?” he said. “Are they all going to be in the same room on different tables with their own chipsets?
https://agbrief.com/news/macau/31/01/2022/employment-concerns-may-save-junkets-satellites/?utm_source=Asia+Gaming+Brief&utm_campaign=bca5822936-AGBriefings-June2021_COPY_01&utm_medium=email&utm_term=0_51950b5d21-bca5822936-69255637&ct=t(AGBriefings-June2021_COPY_01)&goal=0_51950b5d21-bca5822936-69255637
jan22
Macau is the only casino market in the world where the regulation of patrons is more important than restrictions on the casinos themselves. And the leaders of the Peoples Republic of China are now trying to force the largest casino jurisdiction in the world into a Marxist model. I once asked the U.S. government’s top China economist, “In what way is the PRC still communist?” He answered, “It’s no longer communist. It’s Marxist.” The difference is significant. A communist government would never allow an unrestrained free-market economy. It would also require true socialism, with the government owning everything, including casinos. nelson rose https://www.gamblingandthelaw.com/macaus-casinos-are-about-to-change/
jan22
The International Monetary Fund (IMF) expects Macau’s economy to continue to expand in coming years, after an estimated 17-percent growth in 2021, “helped by the partial recovery of the gaming sector”. But, it warned, “it will take time before the economy returns to its pre-crisis level.”
The fund issued a written statement on Sunday that offered the prediction in the light of discussions last week between IMF officials and Macau officials.
Macau’s gross domestic product (GDP) is projected to grow by 15 percent in 2022, “driven by the gradual return of foreign tourists and the recovery of domestic demand,” said the IMF. https://www.ggrasia.com/new-gaming-licences-to-boost-macau-gdp-in-2023-imf/
jan22
Laying Down The Law
https://www.asgam.com/index.php/2022/01/28/laying-down-the-law/
Unlike most commentators, J.P. Morgan said it does expect the concession re-tendering process to be completed by the June 26th deadline. The law now goes to the Legislative Assembly for review and passage before work can begin on the re-tender arrangements. The government has said it will be open to a short delay if the clock runs out.
https://agbrief.com/news/macau/19/01/2022/gaming-law-contained-surprises-but-not-thesis-changing-j-p-morgan/?utm_source=Asia%20Gaming%20Brief&utm_campaign=e367d1b747-&utm_medium=email&utm_term=0_51950b5d21-e367d1b747-69255637&ct=t%28%29&goal=0_51950b5d21-e367d1b747-69255637
Jan22 https://www.gcs.gov.mo/detail/pt/N22ANjH2tf;jsessionid=5982B464D33743FD4306A62742FAF98F.app08?0
The future maximum number of gaming concessions will be six, while the concessions’ length will be capped at 10 years with the possibility of a 3-year extension, according to the long-awaited proposal to amend the gaming law.
In the bill, which will be submitted to the Legislative Assembly, the Government drops the introduction of a Government delegate to each concessionaire, which was mentioned in the consultation document presented in September.
Also, the bill increases the minimum share capital of gaming concessionaires to MOP 5 billion. Under the law proposal, the casino operators’ managing director – a permanent resident of the Macau SAR – will have at least 15 per cent of the share capital of the concessionaire, up from the current 10 per cent.
With regards to the proposed vetting mechanism for the distribution of dividends, the Government now only proposes requiring prior approval for major financial decisions.
https://www.macaubusiness.com/breaking-news-government-proposes-maximum-of-six-concessions-in-new-gaming-law-proposal-10-year-concession-period/
Macau to have 6 casino licences, lasting 10 years: govt bill
The Macau authorities announced on Friday some of the key aspects of a bill proposing a new regulatory system for gaming that will shape how the industry looks for years ahead.
Macau’s Executive Council, an advisory body to the city’s Chief Executive, stated that there would be a maximum of six concessions, under the government-backed bill. It would end the existing sub-concession model.
It added that the concession period would be a maximum of 10 years, but it could be extended by a further 3 years under exceptional circumstances. The existing six concessions – due to expire in June – covered a 20-year lifespan.
(Read the full press release from the Executive Council: Chinese version and Portuguese version).
Three of the current six operators – namely Sands China Ltd, MGM China Holdings Ltd, and Melco Resorts and Entertainment Ltd – were allowed into the market via a piece of legal improvisation. They actually hold their gaming rights via sub-concessions spun off from the three original concessionaires selected via a 2002 public tender. The three original concessions were the locally-incorporated units of Galaxy Entertainment Group Ltd, SJM Holdings Ltd and Wynn Macau Ltd.
The freshly-announced bill is to be sent to the city’s Legislative Assembly, to be voted on by its members. The length of time that procedure will take depends on the city’s legislators, who can also propose changes to the bill.
During Friday’s press conference (pictured), the Executive Council spokesperson, André Cheong Weng Chon (pictured centre), admitted the Legislative Assembly could take some time reviewing the bill. He said the Macau government would consider extending the duration of the existing concessions in order to provide lawmakers with enough time to complete the review process.
More details on the matter would be disclosed at a later stage, said Mr Cheong, who is also Macau’s Secretary for Administration and Justice.
The government has said previously Macau’s gaming law needs to be updated as a linked issue to a fresh public tender process for Macau gaming rights.
The bill also states that the firm actually holding the casino concession would only be allowed to have up to 30 percent of its shares listed publicly. That was in order to ensure a “more stable relationship” between the concessionaire and Macau, stated a press release from the Executive Council.
None of the current Macau casino firms listed either in Hong Kong or the United States, directly owns its respective Macau licence. That is done via an affiliate.
The Macau government had previously suggested a need to approve dividend distribution to shareholders by the city’s casino operators. The proposal was included in a government document regarding the revision of the city’s gaming law, published in September for public consultation. There was no reference to such proposal in Friday’s press conference.
No changes to taxes
Mr Cheong additionally stated there were no plans for tax hikes regarding the gaming industry. Macau taxes the gross gaming revenue of Macau casinos at a rate of 35 percent, but other levies on casino gaming gross raise the tax rate to 39 percent in effect.
According to the summary of the bill, the Macau government has dropped a proposal to appoint “delegates” to Macau’s gaming concessions, that would have monitored the operation of the gaming firms. Instead, the local authorities would strengthen other channels of supervision, said Mr Cheong.
A delegate system is already used in Macau to monitor other forms of public concession. But the idea of applying the system to the gaming sector had attracted a lot of comment during last year’s public consultation.
Macau’s existing gaming law requires that at least “10 percent” of the gaming concession entity’s share capital has to be held by a “managing director” who is a Macau permanent resident. The bill now presented suggests upping that shareholding portion to 15 percent.
The government-backed bill all states that, among the main goals of casino concessionaires, are promotion of national security, as well as Macau’s economic diversification, and the city’s sustainable development.
Asked by a reporter, Mr Cheong did not clarify whether the reference to national security meant Chinese-backed firms would be favoured in a future tender for fresh casino concessions. He said all firms meeting the relevant criteria to be set by the government for the new tender, would be welcome to present a proposal.
Other government suggestions featured in the bill, include the need to increase the minimum share capital requirement for any local casino concessionaire to MOP5 billion (US$625 million) from the existing MOP200-million threshold.
A number of commentators had said prior to Friday, that the likelihood of a prompt announcement on the future of the industry had increased due to the release before Christmas of the summary results from the public consultation held in the autumn. https://www.ggrasia.com/macau-to-have-6-casino-licences-lasting-10-years-govt-bill/
The proposed amendments all seem largely in line with our thinking and what we have theorized to date.. The proposed changes should give investors some relief from the uncertainty around Macau's future. We do not see anything overly negative stemming from the proposed law changes. Following passage of the law in the legislature, the next step will be for the government to run the tender process, which will most likely take place in the spring. It is possible the process is concluded and new concessions are announced in time for the June expiration of the existing concessions; but, the government did say if a short extension is necessary, then it would be given. UMANSKy
The Macau government held a press conference today to announce the scope of the proposed amendments to the gaming law and answer the questions from the press. The actual gaming law amendments will be sent to Macau's legislature for approval and the actual document should be available within the next days. The proposed amendments all seem largely in line with our thinking and what we have theorized to date.. The proposed changes should give investors some relief from the uncertainty around Macau's future. We do not see anything overly negative stemming from the proposed law changes. Following passage of the law in the legislature, the next step will be for the government to run the tender process, which will most likely take place in the spring. It is possible the process is concluded and new concessions are announced in time for the June expiration of the existing concessions; but, the government did say if a short extension is necessary, then it would be given. UMANSKY
ANALISE DETALHADA:
Macau gaming law amendments detailed analysis: a giant win for Macau’s six concessionaires
https://www.asgam.com/index.php/2022/01/15/macau-gaming-law-amendments-detailed-analysis-a-giant-win-for-macau-six-concessionaires/
"Leva a crer que para além das que já cá estão, não haverá grande interesse para novos operadores se apresentarem a concurso, visto que se quiserem fazer investimento o prazo é demasiado curto", frisou o advogado Pedro Cortés, sócio da Rato, Ling, Lei & Cortés -- Advogados, escritório que presta consultoria na área do jogo.O advogado português faz as contas e declara: "2-3 anos para pôr de pé um 'resort' integrado e 7 anos para retorno do investimento? Não creio que seja poss ível no quadro atual".
Macau’s Secretary for Administration and Justice, Mr André Cheong Weng Chon, has announced that amendments to the Macau gaming law will see the end of dedicated junket rooms in Macau’s casinos and revenue share arrangements between junkets and Macau’s casino concessionaires. The announcement, made late on Friday at a press conference providing the media with many details of the highly anticipated gaming law amendments, puts an end to such arrangements which have been standard operating procedure in Macau for over three decades. The upcoming changes announced by Cheong leave the door open for junkets and VIP play to continue in a vastly reduced role, still receiving commission on turnover in arrangements like those seen in Singapore and Australia but would see junkets as mere shadows of their former selves. https://www.asgam.com/index.php/2022/01/17/no-junket-rooms-or-rev-share-contracts-under-new-macau-gaming-law/
Each Macau junket will only be allowed in future to work with a single Macau casino concessionaire, but so-called ‘sub-agents’ – people that collaborate with Macau junkets to introduce players, but have not themselves historically been licensed by the city’s government – will still be permitted, subject in future to approval by the local regulator. That is according to the details freshly tabled in relation to the draft bill announced on Friday, to update the city’s gaming regulatory framework. The bill was published on Tuesday on the website of the city’s Legislative Assembly. https://www.ggrasia.com/junkets-tied-to-single-macau-op-sub-agents-ok-gaming-bill/
Although the law didn’t ban junkets outright, J.P. Morgan said the legislation will make them effectively obsolete and therefore it factors zero junket revenue into its forecasts. The law stipulates that a junket promoter can only work with one operator and will essentially become a dedicated marketing agent. The prior revenue sharing arrangements have been banned. https://agbrief.com/news/macau/19/01/2022/gaming-law-contained-surprises-but-not-thesis-changing-j-p-morgan/?utm_source=Asia%20Gaming%20Brief&utm_campaign=e367d1b747-&utm_medium=email&utm_term=0_51950b5d21-e367d1b747-69255637&ct=t%28%29&goal=0_51950b5d21-e367d1b747-69255637
JunketsEm entrevista à TDM-Rádio Macau, Helena de Senna Fernandes disse também que a nova lei do jogo poderá ter algum impacto no sector hoteleiro e no fluxo de turistas, por causa das restrições aos promotores de jogo.
SATELITES
Macau’s so-called “satellite” casinos – venues controlled by independent investors, but which have piggybacked on the gaming licence of one of the existing concessionaires – will under the city’s new regulatory framework for gaming, have a three-year grace period to create much closer ties to any one of six concessions to be granted in future, it was revealed on Friday. A summary of the bill for the new framework was detailed on Friday. It says any casino operating in Macau will have to be established in an asset that is owned by a gaming concessionaire. “So, with this bill… gaming concessionaires… have a three-year grace period to deal with this [ownership] issue, which is a reasonable time frame.” said André Cheong Weng Chon, spokesperson for Macau’s Executive Council, at a briefing on the bill. “In our existing laws, we do not really have the [legal] concept of a… satellite [gaming] venue, which is, in effect, a casino within a hotel, and the ownership of this kind of property is not in the hands of the [gaming] concessionaire,” said Mr Cheong, who is also Macau’s Secretary for Administration and Justice. https://www.ggrasia.com/macau-satellites-to-tie-premises-to-concessionaires-says-bill/
The Macau government’s proposal in its gaming regulatory bill, to have the city’s so-called “satellite” casino venues tie their premises to local gaming concessionaires, was “surprising”, says an investor in a satellite operation, in comments to GGRAsia. The extinction of satellite casino operations in Macau could not be ruled out in the future, stated respectively the investor, and a Macau gaming scholar. The consultation document regarding amendment of Macau’s gaming law framework, issued in September, “did not mention the treatment of satellite casinos,” observed Hoffman Ma Ho Man.He is an executive at Hong Kong-listed Success Universe Group Ltd, an investor in the Ponte 16 casino resort, which uses the gaming licence of SJM Holdings Ltd.A summary of the Macau gaming law amendment bill was revealed on Friday. The current six Macau licences expire in June, and the government has said a new regulatory system must be in place before a fresh public tender on Macau gaming rights can take place.The city’s satellite casinos will, under the proposed bill, have a three-year grace period to tie the ownership of the premises to any one of six gaming concessionaires that will be permitted in the Macau market. “Is that a transfer of… 100-percent ownership,” to a concessionaire, “or are there any particular shareholding requirements?” wondered Mr Ma in his comments to GGRAsia. Wang Changbin, director of the Centre for Gaming and Tourism Studies at Macao Polytechnic Institute, told GGRAsia: “In regulatory terms, the proposed bill does clear up the oversight issues relating to satellite casinos.” But he added: “In economic terms…that could mean some potential loss of client network in the event that the satellite casinos fail to see their premises acquired [by gaming concessionaires] and the gaming operation is terminated.” Under the proposed law, the current satellite casino investors would “possibly have no role as a gaming operator any more unless they have become a gaming concession bidder, or the shareholders in these bidding companies,” said the scholar.
Os casinos satélite estão preocupados com a proposta do Governo à revisão à Lei do Jogo, que obriga a que os casinos só possam ser instalados em imóveis detidos pelas seis concessionárias. De acordo com esta proposta de lei, os proprietários de casinos como Golden Dragon, Ponte 16, ou Legend Palace, ou seja, que resulta de uma parceria de privados com as concessionárias, vão ter de vender os imóveis às operadoras ou fechar as zonas de jogo.
No entanto, segundo o jornal Ou Mun, a proposta está a causar mal-estar entre os casinos satélite, como noticiado nos últimos dois dias, através de fontes anónimas, identificadas como “responsáveis por casinos satélites”.
Segundo um dos interlocutores ouvidos, os donos deste tipo de espaços estão muito preocupados, porque consideram a proposta injusta e lesiva. O documento define um período para a venda de três anos, após a entrada em vigor da lei que sair da Assembleia Legislativa. Este responsável explicou que os proprietários fizeram investimentos elevados nos diferentes hotéis e vão ser forçados a vender numa posição de fragilidade, uma vez que, por um lado, têm de concluir os negócios em três anos, e, por outro, têm de vender numa altura em que a indústria está desvalorizada, pela situação pandémica. https://hojemacau.com.mo/2022/01/21/jogo-casinos-satelite-temem-despedimentos-e-vendas-forcadas-de-hoteis/
Jay Chun, chairman of Paradise Entertainment, has warned that a clause in Macau’s proposed gaming law will have a negative impact on the local economy and small businesses. The amendments to the law, which were made public in January, include a requirement for all casinos to be in premises owned by the concessionaires. They also ban any revenue sharing agreements. There will be a three-year transition period for arrangements to be made to comply with the regulation. Although there are few details, analysts have noted that it appears to sound the death knell for Macau’s satellite casinos.Paradise Entertainment runs the Paradise Kam Pek satellite casino in Peninsula Macau under a license from SJM. “Basically, overall it’s good as it’s more regulated,” Chun said in a Face-to-Face interview that will run this Friday. “Several of the items are concerning and we have to see exactly what the articles are. We don’t understand how it works and what percentage they should hold,” he said, referring to how the law changes will affect the satellites.Chun argues that the local casinos are still a good business model. Many are on the peninsula and are surrounded by restaurants, hotels and souvenir shops, which depend on the casino traffic, not to mention the loss of local jobs if the casinos close. He said the local casinos are still a valid business model.“It doesn’t mean that everyone should go to the Cotai side,” he said. “We are always talking about the economy, but if the satellites are shut down there will be an impact.
https://agbrief.com/intelligence/deep-dive/24/01/2022/satellite-casino-abolition-to-harm-local-economy-jay-chun/?utm_source=Asia+Gaming+Brief&utm_campaign=cf60051c64-&utm_medium=email&utm_term=0_51950b5d21-cf60051c64-69255637&ct=t()&goal=0_51950b5d21-cf60051c64-69255637
Macau gaming scholar Davis Fong believes the Gaming Bill amendment will not pose an impact on satellite casinos at least in the short term, and instead has urged the public to consider the long-term implications of the gaming industry, Macau TDM reports. However, Fong said that the legislation comes with a three-year transition period, allowing satellite casinos to either exit, or adapt to the new rules. Fong also noted that these satellite casinos, in their current form, are not in the “developmental direction” that Macau has been moving towards, and has urged the public to consider the long-term stability of the gaming industry that will come with these new rules. https://agbrief.com/news/macau/24/01/2022/changes-to-satellite-casino-regulation-good-for-long-term-stability-fong/?utm_source=Asia+Gaming+Brief&utm_campaign=cf60051c64-&utm_medium=email&utm_term=0_51950b5d21-cf60051c64-69255637&ct=t()&goal=0_51950b5d21-cf60051c64-69255637
Entre os legisladores que intervieram na discussão da proposta de lei, todos mencionaram as repercussões nos casinos-satélite. Lo Choi In, deputada do campo de Jiangmen, perguntou se tinha havido um estudo sobre o impacto da medida. “Qual é o impacto do encerramento dos casinos-satélite? O Governo tem dados sobre quantas empresas são afectadas pela medida de forma directa e indirecta?”, perguntou Lo. “Gostava de saber qual é o resultado dessa avaliação e se já ponderaram o impacto para a sociedade destas mudanças”, frisou.
Angela Leong, que além de deputada é directora da concessionária SJM, participou no debate e puxou pelas credenciais profissionais: “Eu domino um bocado estas questões porque faço parte do sector do jogo”, começou por dizer. “Precisamos saber o que vai acontecer com os trabalhadores dos casinos-satélite. Será que vão passar para as novas concessionárias?”, perguntou. “E as pessoas que trabalham na restauração ou nas lojas dentro desses casinos.
Será que com a proposta de lei aquelas actividades económicas são absorvidas sem sobressaltos?”, insistiu.
Si Ka Lon, deputado ligado ao campo político de Chan Meng Kam, anteviu a falência de várias pequenas e médias empresas (PME). “As PME são quem vai sofrer mais e falir primeiro. É um cenário muito fácil de prever com esta proposta de lei”, afirmou Si. “Não nos podemos esquecer que sempre que quisemos impulsionar as PME se pediu aos casinos para que aumentassem a procura de serviços. Se formos agora fechar estes casinos o impacto será profundo”, alertou.
Zheng Anting, também do campo de Jiangmen, apelou ao Governo para respeitar a história de Macau e reconhecer o papel dos casinos-satélite. “É preciso recordar que estes casinos-satélite tiveram um efeito muito positivo, porque antes do Cotai foram eles que contribuíram para a economia do território”, vincou.
Debate é na comissão
Apesar de várias perguntas sobre os casinos-satélite, o secretário para a Economia e Finanças não quis discutir o assunto, nem respondeu se existem dados sobre o impacto da medida. https://hojemacau.com.mo/2022/01/25/al-aprovada-lei-do-jogo-apesar-de-chuva-de-criticas-sobre-casinos-satelite/
Song Pek Kei está preocupada com o possível colapso dos casinos satélite provocado pela nova lei do jogo. No dia em que o diploma foi discutido na Assembleia Legislativa (ver páginas 4-5), o jornal Ou Mun publicou declarações da deputada a criticar as normas que incidem sobre os casinos-satélite por serem “excessivas e não deixaram espaço para a sobrevivência das empresas que os exploram”.
Importa referir que Song Pek Kei foi eleita pela lista ligada à comunidade de Fujian, que tem como figura máxima o ex-deputado Chan Meng Kam, fundador e CEO do Golden Dragon Group. O grupo empresarial do também membro da Conferência Consultiva Política do Povo Chinês, é proprietário do Casino Golden Dragon, Royal Dragon e Casino Million Dragon na península, com mesas de jogo exploradas ao abrigo da concessão da SJM Holdings. Na Taipa, o grupo tem o Grand Dragon Casino, sob a concessão da Melco Resorts.
Apesar de estar de acordo com as disposições de salvaguarda da segurança nacional, enquanto critério para manutenção de concessões de jogo, Song Pek Kei defende que deve ser mantida a flexibilidade de operações na indústria do jogo, para garantir a competitividade e o desenvolvimento sustentado do sector. https://hojemacau.com.mo/2022/01/25/casinos-song-pek-kei-alerta-para-regulacao-excessiva-de-satelites/
INCERTEZAS
According to David Green, an advisor to the Macau government during the drafting of the original Gaming Law 16/2001, “Any uncertainty around the price of admission is potentially a serious issue.” In a Wednesday note, investment bank JP Morgan said uncertainty around new table and slot limits “does leave room for imagination.” However, it also suggested it was unlikely the target amounts will be too onerous because, “The government’s own projection on GGR has almost always been on conservative side over the past decade; too much burden would push operators to return tables to the government, in turn weighing on local employment; and the provision is probably introduced to improve overall efficiency of table utilization, as most properties were meaningfully underutilized even pre-COVID. Time will tell.” https://www.asgam.com/index.php/2022/01/20/uncertainty-abounds-over-macau-gaming-law-provision-for-ggr-based-cap-on-table-games-slot-machines/
DUVIDAS
In fact, Mr Tash argues, “the poorly-worded September document strangely made the reduction to ten years more palatable, because casino operators felt like winners once two of the more controversial elements (dividends and government watchdog) were removed”. In this sense, Alidad Tash singles out winners and losers. On the winning side are the Government “by appearing to give in, despite having halved the term (with little objection from the license-holders” and the public since “the least desirable elements (junkets and satellites) are severely curtailed”. However Mr Tash believes that “the ultimate winners are the three American gaming companies that may get another ten years of life, until we go through the same process yet again”
On the losing side of the equation, junkets who lost in December – following the Suncity scandal – “are now joined by satellite operators who are suddenly forced to either reach deals with the license-holders with little leverage, or become exclusively non-gaming”.
The bill unveiled on Friday also mandates that casinos in the future can only operate in the properties owned by gaming concessionaires, while a three-year grace period will be given for concessionaires to tackle the problem if they have casinos in the properties owned by a third-party. For Ben Lee “what’s left unanswered are how the national security law will apply to the new concessionaires and how much or what form of non-gaming investments they will have to engage in”. In addition, Carlos Lobo notes that, despite the withdrawal of a prior government approval when operators distribute dividends to their shareholders, it remains to be seen if authorities set our criteria for dividend sharing. “The government was clear to say their concern on this matter was the financial capacity of these companies so I would not be surprised if there’s a limit on dividends”, Mr Lobo said.
https://www.macaubusiness.com/gaming-law-amendment-bill-good-news-for-industry-experts/
DUVIDAS. In what may be the most significant development to emerge from publication of draft bill is the apparent absence of any clear reference to the payment of dividends by concessionaires to their shareholders, typically the wider listed entities operating the entire integrated resorts offering. The government’s initial consultation document, released in August, had included a proposal that concessionaires require government authorization before declaring dividends and was arguably the single most discussed issue among investors in the months that followed. However, the draft bill does not specifically mention any requirement for dividend approval, with the only reference seemingly associated being a short clause stating, “The concessionaires must inform the Chief Executive before executing any major financial decisions that exceed those stipulated in the contracts.” https://www.asgam.com/index.php/2022/01/18/macau-legislative-assembly-publishes-draft-amendments-to-gaming-law/
DUVIDAS (27/1/22) VER!
Macau SAR authorities will need to further clarify how the provisions in the proposed gaming law draft bill will be enforced in the future, especially concerning the relationship between gaming concessionaires, junket operators and ‘satellite casinos’, researchers told Macau News Agency. https://www.macaubusiness.com/plenty-of-future-clarifications-are-needed-on-practical-enforcement-of-proposed-gaming-law-researchers/
N
SEGURANÇA NACIONAL
o Artigo 45.º, referente à anulação e extinção, lê-se que uma concessão pode ser anulada pelo chefe do Executivo do território por, entre outras, "ameaça à segurança nacional e da Região Administrativa Especial de Macau". Na sexta-feira, aquando da apresentação da nota justificativa da proposta de lei de revisão do jogo, o Governo já tinha indicado que um dos conteúdos principais patentes no projeto seria precisamente a "clarificação dos objetivos principais (...) nomeadamente a obrigatoriedade de exploração de jogos de fortuna ou azar em casino tendo em conta a salvaguarda da segurança nacional" e de Macau.
https://www.noticiasaominuto.com/mundo/1913251/macau-quer-anular-concesses-de-jogo-por-ameaa-segurana-nacional
O consultor e analista de jogo Steve Vickers considera que os investidores estrangeiros devem ter em conta os “riscos políticos”, uma vez que a segurança nacional será um factor a ter em conta pelas autoridades para a atribuição de licenças de jogo Apresentada a nova proposta de lei do jogo na Assembleia Legislativa (AL), o analista de jogo e consultor Steve Vickers emitiu esta quarta-feira um comunicado onde comenta as principais alterações trazidas com o diploma. A mais premente, para o responsável, é o facto de o Chefe do Executivo poder anular uma concessão de jogo caso exista uma ameaça à segurança nacional.
“O maior risco que as operadoras de jogo enfrentam não é do ponto de vista regulatório, mas sim político. As autoridades de Macau e da China, quando avaliarem a renovação das licenças, vão ter claramente como critério a segurança nacional. Por exemplo, o fluxo de capital pode ser considerado, especialmente quando estiver ligado às operadoras norte-americanas que procuram repatriar os seus dividendos.” Desta forma, para este analista, “o Governo de Macau poderá agir em matéria de partilha de dividendos, considerados excessivos, particularmente se forem registados grandes fluxos de capital da China, trazendo preocupações em matéria de segurança nacional a Pequim”. https://hojemacau.com.mo/2022/01/21/lei-do-jogo-steve-vickers-alerta-para-risco-politico-devido-a-seguranca-nacional/
The inclusion of national security provisions under the recently revealed gaming law bill draft is surprising and could represent Beijing’s concerns over containing capital outflows, analysts posited.. Security consultancy firm Steve Vickers & Associates expressed in a dispatch that the change shows that the “primary factor’ which the Chinese and Macau authorities will consider when evaluating concession renewals and regulations will “clearly be national security”. “Whether for example, capital flight can be contained, especially when linked to US operators seeking to expatriate dividends,” the security consultant noted. https://www.macaubusiness.com/national-security-provisions-under-gaming-law-proposal-linked-to-mainlands-capital-outflow-concerns-analysts/
Revisao intermédia
Gaming concessionaires will be subject to an assessment by the Gaming Inspection and Coordination Bureau (DICJ) every three years, according to the gaming law amendment bill, which was submitted by the Government to the Legislative Assembly and published this morning. The draft bill “Amendment to Law No. 16/2001” states in article 22 – concerning the duties to be observed by the casino operators – that they will need to undergo an interim evaluation by the regulator to verify if they are fulfilling the obligations spelled out in their concession contracts. https://www.macaubusiness.com/breaking-news-gaming-operators-to-be-subject-to-interim-assessment-every-3-years-draft-bill/
Concessionaires will also be subject to a review every three years in which Macau’s gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ) will examine general contractual compliance. A failure by any concessionaire to comply with the stipulated terms of their contracts, or a lack of proactivity in doing so, will be referred to the Secretary for Economy and Finance. https://www.asgam.com/index.php/2022/01/18/macau-legislative-assembly-publishes-draft-amendments-to-gaming-law/
jan22
minimum annual target of casino gross gaming revenue (GGR) to meet
Macau gaming concessionaires will in the future each have a minimum annual target of casino gross gaming revenue (GGR) to meet, according to the draft gaming bill freshly tabled on the website of the city’s Legislative Assembly. If operators fail to meet such target, they will still be required to pay the city’s government the shortfall in the gaming tax the authorities had been expecting.
The GGR target will be calculated based on the maximum number of gaming tables and gaming machines that each concessionaire is authorised to operate in any given year.
https://www.ggrasia.com/macau-ops-face-yearly-ggr-targets-minimum-tax-pledge/
Foi ontem publicada a proposta inicial na nova lei do jogo que confere ao Chefe do Executivo o poder para fixar um mínimo de receitas por cada mesa de jogo, o que pode levar à diminuição do número de mesas e ao pagamento de compensações. Cada junket, só pode funcionar numa única operadora e as concessões podem ser extintas se ameaçarem a segurança nacional
https://www.plataformamedia.com/2022/01/19/chefe-do-executivo-de-macau-vai-fixar-receitas-minimas-por-mesa/The main uncertainty to come out of the detailed draft that was released on Tuesday was the requirement for a minimum level of gross gambling revenue per machine and table. The government will formalize a cap for each operator in terms of numbers of tables and machines. If they fall short of the government-mandated GGR levels, they will be required to pay a premium to ensure the government maintains its revenue targets. If they can’t meet the target for two straight years, the tables, or machines, can be revoked. “While we did expect the so-called “Table Cap policy” to be formalized, we didn’t expect this,” the firm said. The “target amount will be published later via the official gazette and this uncertainty does leave room for the imagination, we admit,” it said. However, J.P. Morgan added that it doesn’t think that the GGR targets will be too onerous, given that historically the government’s GGR forecasts have been on the conservative side. In addition, the removal of tables if operators can’t meet the targets would have an impact on employment as only locals can work as dealers.https://agbrief.com/news/macau/19/01/2022/gaming-law-contained-surprises-but-not-thesis-changing-j-p-morgan/?utm_source=Asia%20Gaming%20Brief&utm_campaign=e367d1b747-&utm_medium=email&utm_term=0_51950b5d21-e367d1b747-69255637&ct=t%28%29&goal=0_51950b5d21-e367d1b747-69255637
A formal cap on the number of both gaming tables and slot machines that each concessionaire will be permitted to operate was an unexpected feature of the draft bill, with the cap to be policed by way of a minimum annual gross income limit, and therefore minimum tax limit, that each table or machine will be required to generate – presumably calculated as an average. If this minimum taxation amount is not reached, the concessionaire will be required to make up the difference and if not reached for two consecutive years, the Chief Executive may reduce the number of tables or machines authorized for use. Lacking from the draft bill, however, is any specific detail on exactly how the government will determine such limits, other than two paragraphs stating that both the minimum annual limit of gross income from each gaming table and gaming machine, and the maximum limit for the total number of gaming tables and gaming machines to be operated, “is determined by order of the Chief Executive to be published in the Official Gazette of the Macau Special Administrative Region.” According to David Green, an advisor to the Macau government during the drafting of the original Gaming Law 16/2001, “Any uncertainty around the price of admission is potentially a serious issue.” While it may be that concessionaires propose their own minimum GGR per unit number, “The risk to the government in setting that number itself is that it might be wildly off the mark, and they find either that no one but the incumbents are interested, or that it is overwhelmed by respondents.” Green, who has stated previously that the shorter 10-year license terms being offered under re-tendering mean the Macau opportunity is no longer what it was two decades ago, also questions the provision that could see gaming tables or slot machines taken back by the government if minimum GGR numbers aren’t met.The introduction of caps on both table games and slot machines formalizes a plan originally announced in 2012 which saw the Macao SAR Government introduce a nominal cap on table games. The table cap, which has now run for 10 years and is due to expire in 2022, allows for a 3% compound annual growth rate on the number of tables available to the entire Macau casino market. Although it provided no definitive numbers at the time, Union Gaming’s Govertsen calculated that the 5,500 tables operating in Macau in 2012 meant up to 1,892 new tables could be issued through 2022 – taking the total allowed by this year to a maximum of 7,392. As of 31 December 2021, the total number of gaming tables operating in Macau was 6,198 alongside 11,758 machines. Table numbers reached a high of 6,739 in 2019, just before the onset of the COVID-19 pandemic. https://www.asgam.com/index.php/2022/01/20/uncertainty-abounds-over-macau-gaming-law-provision-for-ggr-based-cap-on-table-games-slot-machines/
maximum number of gaming tablesThe bill provides for a maximum number of gaming tables and gaming machines each concessionaire will be authorized to operate each year. This will be closely linked to business volume with the Chief Executive to determine a “minimum annual limit of gross income from each gaming table and gaming machine”. If this minimum annual income is not reached, the concessionaire will be required to make up the difference and if not reached for two consecutive years, the Chief Executive may reduce the number of tables or machines authorized for use. https://www.asgam.com/index.php/2022/01/18/macau-legislative-assembly-publishes-draft-amendments-to-gaming-law/
Macau casino shares gave back some of their gains after the government published the city’s new gaming laws, which tighten supervision and capital requirements.
Casinos to pay “premium” if tables/ slots fail to generate minimum GGR.
Concessionaires to face three-year annual performance review.
Revenue sharing for junkets, management companies banned.
Operators to inform government of overseas plans of shareholders over 5%.
"A divulgação foi bem recebida pela clareza no que diz respeito ao ambiente regulamentar pós-licitações. Nada do que foi divulgado no projeto de lei foi, na nossa opinião, excessivamente surpreendente ou negativo", explicou à Lusa Colin Mansfield. O especialista da agência Fitch considerou ainda que um fator a favor desta proposta de lei, apresentada na sexta-feira, com divulgação mais detalhada na terça-feira, foi o facto de não ter havido alterações materiais na taxa do imposto sobre jogos e não estarem estabelecidos impedimentos materiais à capacidade de pagamento de dividendos por parte dos operadores. Ainda assim, ainda existem dois fatores que podem provocar instabilidade. "O primeiro é o que a estrutura de licitações implica e quem acaba por receber a próxima geração de concessões (por exemplo, pagamentos únicos, compromissos de capital, etc.). Em relação aos critérios de adjudicação das novas licenças de jogo, o porta-voz do Conselho Executivo, André Cheong, apenas disse que os concessionários têm de cumprir as leis, aumentar a responsabilidade social e os elementos não-jogo. O segundo fator, é a recuperação dos visitantes em Macau "e subsequentes receitas brutas do jogo". https://www.sapo.pt/noticias/economia/lei-do-jogo-em-macau-bem-recebida-mas_61e92fcd9ecf2157cde2e131
The tabling of Macau’s draft bill to amend its gaming law framework is “credit positive” for Macau gaming-linked companies, suggests a Wednesday report from Moody’s Investors Service Inc. The ratings house said this is because the bill “removes significant regulatory uncertainties” over the “extension” of the six existing licences, that are due to expire on June 26 this year, and removes “uncertainties concerning substantially-tighter regulations being imposed on the city’s six gaming concessionaires”. The bill is due to undergo a first reading and first vote in Macau’s Legislative Assembly on Monday (January 24). “We continue to expect Macau’s six gaming operators to renew their concessions,” stated Moody’s. “Non-renewal of any of the concessions would pose substantial risk to government finances and economic stability in Macau because of the significant amount of employment the industry generates,” it added. https://www.ggrasia.com/draft-law-a-credit-plus-for-macau-linked-firms-moodys/
An article in Macau’s draft new gaming law, to create a mechanism to dissolve an existing gaming concession in the event it was not granted a new licence after the current six concessions expire in June, is legally problematic for a number of reasons, say several experts on Macau law, in commentary to GGRAsia. (...) “It does not make sense that the company is asked to undergo dissolution because it fails to secure a gaming concession,” he stated. In that event, although the company “cannot operate casino gaming,” it could still “continue to operate other businesses, as the hotels, the MICE facilities, retail, etc,” said Mr Vilela. https://www.ggrasia.com/macau-concession-dissolution-proposal-problematic-experts/
With the concession expiry deadline looming the government is pushing ahead with its plans for a public re-tender for the coveted licenses. Glenn McCartney MBE, Associate Professor of International Integrated Resort Management at the University of Macau, writes that the attention will soon be focused on the request for proposal process and ensuring the pitches are in line with the government’s clearly stated objectives will be key. https://agbrief.com/intelligence/25/01/2022/macau-bidders-need-to-pay-close-attention-to-government-vision/?utm_source=Asia+Gaming+Brief&utm_campaign=f9ec4f50e1-&utm_medium=email&utm_term=0_51950b5d21-f9ec4f50e1-69255637&ct=t()&goal=0_51950b5d21-f9ec4f50e1-69255637
jan22JPMorgan Head of Asian Gaming, Leisure & Education research DS Kim says he has turned 'incrementally bullish' on Macau's gaming sector. He was speaking with Yvonne Man and David Ingles on "Bloomberg Markets: China Open." (Source: Bloomberg) https://www.bloomberg.com/news/videos/2022-01-26/jpmorgan-bullish-on-macau-s-gaming-sector-video
A plan to cap the number of gaming chips in circulation in the Macau market is to ensure industry liquidity in the event depositors seek to withdraw funds en masse, say several industry experts spoken to by GGRAsia. The idea is part of the draft law to amend the city’s gaming law, which is currently going through Macau’s Legislative Assembly. The city’s incumbent secretary for economy and finance will stipulate the level of the cap, and gaming concessionaires will have to require approval from the local regulator to acquire new chips. The companies would be required to guarantee the value of the chips via either cash or credit.“When there was a run on the junket operators’ cages…[in 2020] the junkets eventually met all withdrawal demands but in a delayed fashion. The chatter on the ground was that part of the reason for the delay was the result of the [gaming] concessionaires not having sufficient cash on property, to return the junkets’ deposits,” remarked Ben Lee, managing partner of IGamiX Management and Consulting Ltd, to GGRAsia.
https://www.ggrasia.com/macau-chip-cap-idea-for-industry-liquidity-experts/
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