Legal experts say Macau gaming bill signals a break with the past

Experts say the bill shifts the focus from development to readjustment of the gaming industry’s size.

Macau.- António Lobo Vilela, an expert on gaming law, and Pedro Cortés, managing partner of law firm Rato, Ling, Lei & Cortés, see Macau’s new gaming law amendment bill as signalling a break with the past. In interviews with Macau News Agency, they say the bill, which will see its first debate on January 24 is a game-changer in several ways.

Lobo Vilela said the bill entails “cuts from the past” by shifting the focus from development to industry-scale realignment. He highlights proposed measures, such as the new capping arrangements for gaming tables and slot machines and the requirement for casinos to be located on properties owned by the franchisee.

He also referred to the introduction of targets for gross gaming revenue from tables and machines and the prohibition of revenue-sharing arrangements, which could lead to the end of satellite casinos.

As for the proposal to allow up to six gaming concessions with a length of 10 years, Vilela questioned who would invest in brick and mortar but added that “the current six operators will have to go to the game as they are loaded with properties with no value if they cannot operate casino gaming.”

Vilela noted that the bill contains many positive features for the industry. He said : “A good thing about the law is that finally, one knows with clarity where the government intends to go.”

Meanwhile, Pedro Cortés said that the bill is “a game-changer to the extent that finally, the Macau government is serious about economic diversification and sustainable development, limiting the sector’s weight in the economy”.

However, Cortez questioned whether this was the best approach “given the current economic conditions.” For Cortez, increased concession responsibilities and government oversight are key elements reflected in provisions such as the mid-term review of the concessionaire’s performance of contractual obligations every three years