Seeking to ensure effective regulation of gaming credit, the gambling capital of the world, Macau, recently introduced a new legislative proposal. The proposed regulation, called “Legal regime of credit concession for gambling in casinos,” seeks to enable the government to enforce tight regulations on gambling credit and penalize companies that do not adhere to the regulatory framework.
Now, the aforementioned proposal gained further traction in Macau, Asgam reports. The proposed tightened regulation has successfully passed Macau’s Legislative Assembly. This marked an important step, allowing the proposal to gain further traction. The next stop for the new legislation that seeks to enforce strict rules for gaming credit is the Legislative Assembly committee.
While the proposal is yet to be voted and approved, opponents have already voiced their concerns. According to Jose Pereira Coutinho, one of Macau’s legislators, the strict rules come at a time when the junkets in the region have seen a significant decline in business volumes. He even warned that junkets are “sinking.” Coutinho explained: “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?”
On the other hand, Lei Wai Nong, Macau’s Secretary for Economy and Finance, deemed the new legislation a “technical adjustment.” He claimed that the regulation doesn’t introduce serious changes to the already existing regulations. Nong said: “This law was enacted because the government hopes that the gaming credit business can develop more healthily.”
Concessionaires and Junkets That Breach the Rules Can Face Fines
Essentially, the new proposal seeks to restrict casino management companies, as well as concessionaires’ casino satellites to offer gaming credit. The regulations would permit only concessionaires or junkets to provide such credit. This effectively forbids third parties from offering gaming credit.
It’s no surprise that breaches of the rules would be subject to regulatory action in the form of fines. In case junkets are found to have violated the gaming credit rules, they may face a fine between MOP600,000 ($109,000) and MOP1.5 million ($185,000). Furthermore, the concessionaires that may breach the rules of having third-party providers offer gaming credit would be subject to stricter fines. Those penalties can vary between MOP2 million $246,000 and MOP5 million ($615,000).