Hoffman Ma Ho Man: Macau gaming credit law won’t impact satellite casinos

Macau’s proposed gambling credit law is unlikely to affect existing satellite casinos, according to the deputy chairman of Success Universe Group.

Macau.- Macau’s proposed new gambling credit law is unlikely to affect existing satellite casinos, according to Hoffman Ma Ho Man. The deputy chairman of Success Universe Group, an investor in Macau’s Ponte 16 gaming resort, has told GGRAsia that gambling credit issuance had already dropped significantly before the new 10-year gaming concessions began in January. 

Under the new bill, junket operators would need to have a formal contract for granting credit to any gaming concessionaire they tie to. Management companies, the non-concessionaire entities permitted to run satellite casino venues under a concessionaire licence, would not be allowed to establish a casino gaming credit contract or perform any related legal acts.

However, Ma Ho Man believes that the bill will have a “very limited” impact on most satellite casino operators as the majority offer cash-play mass-market gambling. 

Macau has just 11 satellite casinos following regulatory changes made ahead of the new concessions. The new bill aims to clarify which entities are allowed to extend gaming credit.

It will forbid “collaborators” from issuing gambling credit. It also states that management companies cannot have management contracts with more than one gaming concessionaire and are prohibited from managing casinos’ financial activities.

The Macau government’s main goal is to “be seen as proactive in fighting capital flight out of China”, said Bruno Ascenção, a Macau-based gaming lawyer. Ascenção added that “the objective is to limit the entities capable of granting credit for casino gaming”, such as gaming concessionaires and promoters, due to concerns about economic and social stability.