Macau has a new gaming method that aims to regularize rather than revolutionize the city’s major industrial and financial backbones.
Legislative framework for running casino games of opportunity, passed by the Hitachi Legislative Assembly (AL) last year Eliminate subcontractors, provide casinos with financial incentives to attract foreign customers, and more tightly regulate junkets. Another bill, especially dealing with junkets, will soon be placed in front of AL.
Lawmakers are also calling on the government to protect employees who may have lost their jobs due to the closure of the casino.
Treasury Secretary Ray Wai Non and other government officials answered questions from lawmakers in yesterday’s final debate and vote.
For the past five months, Parliament’s Second Standing Committee has reviewed the game amendment bill article by article. The original version of this bill came into effect in 2002.
The bill was passed this Sunday just before the city’s three gambling concessions and three sub-concessions expired.
According to the law, the casino will be provided with a financial incentive to attract more foreign gamblers by reducing the tax of 5% on Macau’s total gambling income (GGR) for social welfare and urban development.
Under the original law, the tax was 4% of GGR.
However, the government’s direct game tax rate of 35% on the operator’s GGR remains unchanged.
Ray said he hopes this creates an incentive for game operators to attract foreign gamblers and believes that the government will bring long-term benefits to transform Macau into a global tourism and leisure center. He said he was.
Currently, apart from the 35% direct game tax rate, operators pay 5% of GGR to public revenue sources as an additional levy for social, cultural and other public purposes. This includes 2% allocated to the public Macao Foundation.
Ron Lam Wu Tou, a member of parliament and incumbent commentator, argued that giving financial incentives to game concessions was not a way to guarantee more foreign gamblers, but of other lawmakers. Some are concerned that this will lead to lower social security payments for casino operators. Therefore, Ram requested another vote for the article about the incentives offered to the casino, but was eventually passed by 31 votes in favor and only Ram in opposition.
Ray said the exact percentage of incentives would be considered based on the government’s estimates of the casino’s future total gambling revenue, with details specified by relevant administrative rules.
Ray emphasized that the pandemic has affected the community in the last two years, but nevertheless the government has not reduced the budget for social security funds. Therefore, he promised that the government would ensure that reserves were always sufficient for the fund.
The new game law prohibits subcontractors. This means that future game concessioners will not be able to sell subcontractors. Under the new law, the government can allow concessions for up to six games. Under the old law, the number of concessionaires was limited to three. There is no mention of the possibility of granting subcontractors.
According to the new law, up to six game concessions granted by the government are valid for 10 years, and the old game law enacted in 2001 allowed games, allowing up to 3 years of extension in exceptional circumstances. is. The concession is valid for 20 years and can be extended for up to 25 years.
Currently, Macau’s gaming industry consists of three concessions (SJM, Galaxy, Wynn) and three sub-concessions (Venetian Macao, Melco, MGM). Each of the three concessionaires has one subcontractor. All six operators have stated that they will submit bids for new concessions.
Future game concessions will be the winner of the bidding process that has not yet started. All six game operators will have to extend their licenses until the end of the year and pay a premium of 47 million MOP. The extension will be signed tomorrow, June 23rd.
Many of the city’s casinos owned by game concessionaires or subconcessionaires are located on non-owned premises and are run by third parties such as junket operators. They are informally known as satellite casinos.
Initially, the amendment bill proposed that satellite casinos be housed in games owned by game concessionaires, but management companies are now allowed to continue operating on behalf of their respective game concessionaires or subconcessions. increase. You must own the property in which they are, provided that their owners are among the winners of the next bidding process.
The new law will prevent management companies from sharing satellite casino revenue with their respective game operators. Instead, the latter pays the management fee to the former.
Until a few weeks ago, the number of satellite casinos owned by game operators but operated by third parties (especially junkets) ranged from 18 to 22. Some of them were permanently closed.
Lawmakers yesterday called on the government to take steps to protect the rights of workers at satellite casinos.
Ray said game concessioners and subconcessions need to work their affected staff directly for them, and must comply with Macau’s labor law basics when dealing with satellite casino staff. He added that employment is the largest of Macau’s inhabitants.
Under the new Gaming Act, each junket, known as an officially licensed game promoter, works only for one game concessionaire, only in the form of a company, in exchange for a “fee” from the game concessionaire. can. Part of the income of the concessionaire is allowed.
Some lawmakers said they were concerned that this could limit the development of the junket sector. Ray clarifies the role of the game promoter as a partner in the game concessionaire, which provides customers with the convenience of transportation, hotel accommodation, dining and entertainment services, and prevents junkets from expanding. The “unlimited” of their business that said it was.
Ray added that details of junket regulations will be stipulated in future junket laws.
Adriano Marquez Ho, Director of Gaming Inspection and Coordination, said the purpose of the new law is to better monitor VIP rooms in satellite casinos that were not properly regulated in the past to promote the healthy development of the gaming industry. Said that.
Lawmakers said they hope that future junket laws will be passed as soon as possible so that the government’s game concession bidding process can get off to a good start.
The government has not yet announced a time frame for the bidding process, Macau Post Daily reported.
