{"id":27989,"date":"2022-03-11T07:12:21","date_gmt":"2022-03-11T10:12:21","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=27989"},"modified":"2026-04-23T10:36:44","modified_gmt":"2026-04-23T13:36:44","slug":"macau-legislators-propose-casino-concessionaires-pledge-to-compensation-fund","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/macau-legislators-propose-casino-concessionaires-pledge-to-compensation-fund","title":{"rendered":"Macau legislators propose casino concessionaires pledge to compensation fund"},"content":{"rendered":"\n

The proposal aims to avoid the possibility of claims against the government.<\/p>\n\n\n\n\n\n\n\n

Macau.- Legislators have proposed adding a clause to Macau\u2019s 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.<\/p>\n\n\n\n

Legislator Chan Chak Mo<\/strong> has said the government will review the proposal\u00a0and 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\u00a0Legislative Assembly committee<\/a>.<\/p>\n\n\n\n

The Macau government previously required\u00a0SJM Holdings Ltd and MGM China Holdings Ltd\u00a0<\/strong>to perform certain labour obligations as a condition of two-year extensions of their respective Macau rights granted in 2019.\u00a0<\/p>\n\n\n\n

Each set up a “labour creditor\u2019s rights protection fund”. SJM was required to provide a bank guarantee of no less than MOP3.5bn (US$434.6m) to cover the \u201clabour liabilities after the expiry of the concession extension contract\u201d. MGM China had to provide a bank guarantee of at least MOP820m.<\/p>\n\n\n\n

Macau\u2019s current casino licences were\u00a0due to expire in June 2022<\/strong> but last week the government confirmed it\u00a0will extend the current gaming concessions<\/a>\u00a0and 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\u2019s gaming law amendment bill.<\/p>\n\n\n\n

New licences would then be issued\u00a0in the fourth quarter\u00a0<\/strong>in preparation for a new 10-year licence period from the beginning of 2023<\/p>\n","protected":false},"excerpt":{"rendered":"

The proposal aims to avoid the possibility of claims against the government.<\/p>\n","protected":false},"author":176,"featured_media":26708,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Macau legislators propose a new clause in the gaming law amendment bill, requiring concessionaires to pledge funds for employee compensation claims, particularly in cases of license non-renewal. This initiative, supported by past precedents involving SJM Holdings and MGM China, aims to protect the government from liabilities and is being reviewed as current concessions are extended ahead of a new tender process.","focusai_entities":"Chan Chak Mo, SJM Holdings Ltd, MGM China Holdings Ltd, Macau government, Legislative Assembly","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.95), regulator (0.98), compliance_legal (0.95), operator_casino (0.97), investor_analyst (0.96), supplier_vendor (0.75), journalist_researcher (0.92)","focusai_suggestions":[{"label":"Impact on Concessionaire Valuations?","query":"How might the proposed mandatory labour creditor's rights protection fund impact the enterprise valuation and capital allocation strategies of incumbent Macau gaming concessionaires and prospective bidders?"},{"label":"Regulatory Precedent Analysis?","query":"What are the broader implications of Macau's proposed labour protection fund for regulatory compliance and governance frameworks in other major iGaming jurisdictions, particularly concerning social responsibility and contingent liabilities?"}],"footnotes":""},"categories":[157,16338,158],"tags":[23911,23906],"class_list":["post-27989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","category-slider-home","tag-gambling-regulation","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/27989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=27989"}],"version-history":[{"count":6,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/27989\/revisions"}],"predecessor-version":[{"id":28004,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/27989\/revisions\/28004"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/26708"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=27989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=27989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=27989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}