Macau legislators propose casino concessionaires pledge to compensation fund

The proposal aims to avoid the possibility of claims against the government.

Macau.- Legislators have proposed adding a clause to Macau’s new gaming law amendment bill to require gaming concessionaires pledge funds to meet any compensation claims from employees. The proposal aims to avoid such claims falling on the city and particularly aims to provide cover in case a company fails to secure a licence renewal at public tender.

Legislator Chan Chak Mo has said the government will review the proposal and added it could be achieved by adding new provisions to existing proposals in the new gaming law amendment bill, which is being scrutinised by a Legislative Assembly committee.

The Macau government previously required SJM Holdings Ltd and MGM China Holdings Ltd to perform certain labour obligations as a condition of two-year extensions of their respective Macau rights granted in 2019. 

Each set up a “labour creditor’s rights protection fund”. SJM was required to provide a bank guarantee of no less than MOP3.5bn (US$434.6m) to cover the “labour liabilities after the expiry of the concession extension contract”. MGM China had to provide a bank guarantee of at least MOP820m.

Macau’s current casino licences were due to expire in June 2022 but last week the government confirmed it will extend the current gaming concessions and sub-concessions for up to six months. A new concession tender is expected to be held in the third quarter following the final approval of Macau’s gaming law amendment bill.

New licences would then be issued in the fourth quarter in preparation for a new 10-year licence period from the beginning of 2023