A group of lawyers says the proposal for casinos to require government endorsement before distributing profits is unjustifiable. They propose an alternative solution.<\/p>\n\n\n\n\n\n\n\n
Macau.- Under the\u00a0revision of the city\u2019s gaming law<\/a>, Macau has suggested that\u00a0casino<\/strong>\u00a0administrators should meet certain requirements<\/strong>\u00a0and get government endorsement before distributing profits, regardless of whether it be in cash or shares.<\/p>\n\n\n\n However, a Macau law firm has questioned the proposal, arguing that “there is no legal framework to justify any intervention by the Macau authorities<\/strong>\u00a0in the distribution of dividends from private companies.”<\/p>\n\n\n\n A paper issued by lawyers Rui Pinto Proen\u00e7a and Rui Filipe Olivera states: “The pursuit of profit as the ultimate goal of a private company is embedded in its legal definition prescribed by the Macau Civil Code and\u00a0no shareholder can be deprived of its right to share in a company\u2019s profits<\/strong>.”<\/p>\n\n\n\n They added that\u00a0it is unknown if the proposed measure will efficiently accomplish its underlying policy goals<\/strong>. However, they suggested a series of alternatives that Macau could implement to reach its objectives.<\/p>\n\n\n\n According to Macau’s proposal, casino operators should find ways to attract new customers and will be required to invest to diversify their offerings. Following the model set under different concessions in Macau, objectives might be set in the law and the concessionaires would commit to convey a venture masterplan and execution plans and timetables.<\/p>\n\n\n\n The clearest approach to divert gaming income to the advantage of the nearby local area is via tax collection. <\/p>\n\n\n\n However, the current tax rate (35 per cent demanded over gross gaming income) is viewed as high for global norms. The current agreements predict further commitments (of up to 5 per cent) by the administrators to promote Macau’s travel industry area and social, cultural and scientific development.<\/p>\n\n\n\n The paper states that\u00a0there is no inadequacy of legal mechanisms to assure the monetary capacity of the operators\u00a0<\/strong>throughout the duration of the concession contracts.\u00a0In addition,\u00a0it could also determine rules similar to the ones used in the banking and insurance sectors<\/strong>.<\/p>\n\n\n\n Macau\u2019s Gaming Inspection and Coordination Bureau (DICJ)<\/strong>\u00a0has confirmed that a\u00a0public consultation<\/a>\u00a0on the revision of the city\u2019s gaming law will run until October 29. However, with new Covid-19 cases detected in Macau<\/strong>, the first two public consultation sessions have been cancelled.<\/p>\n\n\n\n Authorities expect to finish the amendment of the gaming law<\/strong>\u00a0by the final quarter this year before presenting a draft bill to the Legislative Assembly.<\/p>\n\n\n\n