Managing expectations
What to expect from the Macau gaming industry during 2020?
Insight submitted by IAGA member Pedro Cortés, Senior Partner, Rato, Ling, Lei & Cortes
COVID-19 pandemic outbreak had a great impact on the Macau gaming industry. It is expected that this will continue to be felt throughout 2020 and, most likely, in the 1Q of 2021. The direct effects of the crisis may lead to a new approach/philosophy on the need to diversify Macau’s economy.
Pedro joined Rato, Ling, Lei & Cortés–Advogados in 2003 and is senior partner, holding the same position in ZLF Law Office. His main areas of practice are: gaming, banking and financial, capital markets, real estate, commercial and corporate, intellectual property and ADR. He is a member of the Macao Lawyers Association, Portuguese Bar Association, Brazilian Bar Association (OAB-São Paulo), Justice Department of Guangdong (as a cross-border Macau lawyer), IAGA and the International Bar Association and is qualified to work as a lawyer in East Timor. He is member of the Chartered Institute of Arbitrators, the Hong Kong Institute of Arbitrators and the Hong Kong Institute of Directors. He was lecturer for the master’s programme on social sciences–global economic politics at the Chinese University of Hong Kong, is a regular speaker on gaming and non-gaming matters and contributes to several legal and non-legal publications.
It has been voiced that the losses associated to the strong decline on the number of visitors and consequently on the gaming gross revenue, may lead to the Chief Executive considering extending all casino gaming concessions (and authorising the extension of all casino gaming sub- concessions), eventually to the maximum allowed by law, i.e. up to five years (until 26 June 2027). This was already voiced by me even before the crisis, e.g. during the IAGA conference held during the G2E Asia in May 2019.
Despite this potential and now more likely scenario, what we shall expect in the coming year in terms of legislation is the following:
The revision of the regulations on gaming promoters (including on
suitability and financial capacity requirements) and gaming machines (including on the improvement of the licensing of gaming machines manufacturers), announced by the Macau Government in the past, might take place during 2020.
Additionally, it is also expected that legislation long due on administrative offences in the gaming sector and on gaming chips and tokens be enacted.
In fact, the Macau Gaming Law stipulates that complimentary legislation shall be enacted by the Macau Government covering, in particular, the public tender process, concession contracts, the use and frequency of casinos, the operation of the premises used for the exploitation of casino gaming concessions, the monitoring of gross gaming revenues, the casino gaming operators’ employees, the practice of casino games of chance and administrative infractions.
As yet, only legislation on the public tender process and concession contracts (Administrative Regulation
P42 NEWSWIRE / INTERACTIVE / MARKET DATA
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