years (the previous regime stated a maximum of 20 years).
3. Enhanced supervision of casino operators: Te amended law includes several legal requirements that aim to increase the supervision of casino operators.
4. Emphasis on corporate social responsibility: Corporate social responsibility is now an important duty for casino operators. Tis highlights the industry's commitment to contributing positively to the local community and promoting sustainable practices.
5. Link between the number of tables and non- gaming elements: Te number of tables authorised for each casino is now directly linked to the development of non-gaming elements. Tis encourages operators to invest in and promote non-gaming attractions, diversifying the overall entertainment options available in Macau.
6. Responsible gaming initiatives: Te amended law includes responsible gaming initiatives and plans as key obligations for concessionaires. Tis underscores the importance of promoting responsible gambling practices and ensuring the well- being of players.
7. Stipulation of criminal and administrative offences: Te amended law explicitly stipulates criminal and administrative offences related to the gaming industry. Tis provides a clear framework for addressing any violations and ensures that appropriate penalties are in place to maintain the integrity of the industry.
Suitability and financial capacity
Indeed, the new suitability assessment criteria introduced by Law 7/2022 are a significant addition to the regulatory framework of the gaming industry in Macau. Tese criteria are designed to ensure that only entities that meet high standards of integrity and responsibility are allowed to operate. Failure to comply with these criteria may lead to the termination of the concession contract. Te criteria include:
1. Risk Assessment: Entities are now evaluated based on whether they take excessive risks in regard to the manner in which they conduct business or the nature of their professional activity.
3. Source of Funds: Tere should be no grounded suspicion about the source of the entity's funds. Entities must be able to demonstrate that their funds come from legitimate sources.
4. Connections to Organised Crime: Entities should not have any unsuitable operations with organised crime, ensuring that the gaming industry is free from criminal influence and maintains a high level of integrity.
5. Criminal History: Te entity should not have been sentenced or indicted for a crime
punishable with three or more years of imprisonment. Tose involved in the gaming industry must have a clean criminal record and be of good character.
In addition to the suitability assessment criteria, the amended Gaming Law maintained the requirement for assessing the 'financial capacity of the concessionaires'. Tis is a crucial aspect of the regulatory framework, as it ensures that the concessionaires have the necessary financial resources to operate effectively and meet their obligations.
Under this provision, the government may request the dominant shareholders, or qualified shareholders, to provide a guarantee for the fulfilment of the commitments and obligations of the concessionaires. Tis guarantee serves as a form of financial security, ensuring that the concessionaires are able to meet their obligations under the concession contract.
Tis mechanism aims to protect the interests of Macau SAR and the public, but also contributes to the stability and integrity of the gaming industry. By ensuring that the concessionaires have the necessary financial capacity and backing, the government can help prevent financial difficulties that could disrupt the operation of the casinos and negatively impact the overall gaming industry in Macau.
Other relevant amendments
Law 7/2022 introduced other several significant changes to the gaming industry in Macau such as:
1. Share Capital and Managing Director: it increased the concessionaires’ share capital from MOP200m to MOP5bn. Te managing director, who must be a Macau permanent resident, is now required to hold at least 15 per cent (up from the current 10 per cent) of the concessionaires’ share capital.
2. Corporate Social Responsibility (CSR): the importance of CSR is emphasised stating that the gaming operators shall support the development of small and medium-sized enterprises, local industries, labour rights and interests, and hire disabled or rehabilitated individuals. Tey are also expected to support activities of public interest and activities of an educational, scientific, technological, environmental, cultural, and sports nature.
3. Annual Premium: the number of gaming machines will also be assessed in addition to the existing criteria: number of casinos, number of tables, games operated and location of the casinos.
4. Special Premium: the introduction of this premium ensures that the government's revenue from the gaming industry is not adversely affected by underperforming gaming tables or machines or by external economic and geopolitical factors, being the special premium calculated as the difference between the special gaming tax that would be due if the annual minimum gross revenue per table or gaming machine was met, and the
WIRE / PULSE / INSIGHT / REPORTS P67
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