Macau, the gambling capital, will tighten gaming credit regulations with the introduction a new law. The Macau SAR Government is proposing legislation entitled “Legal Regime of Credit Concession for Gambling in Casinos” to crackdown on any violation of the credit laws by concessionaires.
Concessionaires, junkets and others who violate the Gaming Credit Regulations face heavy fines
Asgam reported that the bill stipulates that only concessionaires are authorized to grant gaming credits, and casino management firms are strictly forbidden from doing so. Licensees of junkets can enter into agreements that allow concessionaires to extend credit to their players.
The Gaming Inspection and Coordination Bureau, Macau’s gaming regulator will supervise the credit activities and junkets of concessionaires to ensure proper supervision. The bill allows DICJ supervisory staff to perform monitoring duties without prior notice at any time. The bill emphasizes the need for concessionaires to allow monitoring officers access and facilitate their work.
As part of this bill’s penal scheme, those who violate regulations will face severe consequences. Concessionaires who conduct credit operations via a third-party or transfer credit qualifications could be fined between MOP2 and MOP5 millions ($246,000 and $615,000). If found in violation of the relevant regulations, junkets may face fines between MOP600,000.00 and MOP1.5.0000 ($109,000 to $185,000).
The proposed Gaming Credit Law in Macau includes a number of obligations for credit entities.
The bill also introduces a new article that outlines the obligations of credit institutions. This provision requires that both gaming junkets and concessionaires establish a robust credit risk management system and conduct their credit business prudently. The gaming junkets and concessionaires are required to keep a record of their credit activities, as well as implement data protection. A mechanism to handle customer complaints is also required for an effective resolution.
The Macau Executive Council announced the proposed changes to the Credit Law. The latest version has been posted on the Macau Legislative Assembly’s website for public review. DICJ Director Adriano Marques Ho has confirmed that the bill remains in draft form, and will be scrutinized and voted on by the Legislative Assembly.
Macau wants to ensure that the gaming industry is protected and regulated by these new regulations. The government wants to create a transparent gambling environment by holding concessionaires responsible for their credit operations.
