MACAU BUSINESS
“These companies employ over 10,000 workers altogether, and if any of them wind down this will severely impact local
employment,” says legislator Leong Sun Iok
gaming bill recognises the status of “management companies” of a gaming venue besides gaming concessionaires, but these “management companies”, which refer to satellite casinos, could only receive “management fees” from gaming concessionaires, and any forms of commission or profit sharing will be forbidden. Davis Fong Ka Chio, director of the Institute for the
Study of Commercial Gaming of the University of Macau, supports the latest move from the authorities as the issue of satellite casinos was not addressed by the existing legal framework. The academic is also not particularly concerned that gaming concessionaires would not be interested in purchasing these assets. “The authorities have pledged no more new land plots will be zoned for gaming purposes in the future… so there is a limited amount of land resources for operating casinos,” he says. “And some satellite casinos are situated in prime locations.” Concerning satellite casino owners could only receive “management fees” from gaming
I-Wei Huang/Adobe Stock
concessionaires in the future, the scholar says the proposed bill did not set a cap on the “management fees” and both sides could negotiate for the appropriate amount of the fees.
Individual registrations
The government has so far explained this move is not to “replace or outlaw” satellite gaming venues. During the discussion of the revised gaming law at the first reading in the Legislative Assembly in late January, Secretary for Economy and Finance Lei Wai Nong emphasised both the existing and proposed new versions of the gaming law mandate gaming concessionaires have to revert the physical gaming venues and casino equipment back to the authorities at the lapse of their concessions. The proposal change requiring casinos to be set up in the assets owned by concessionaires is to ensure this could happen, he added.
The subcommittee of the legislature is now discussing the bill before an expected final reading by June or earlier, and changes are still possible to be made in the meantime. Legislator Leong Sun Iok points out some of the additional technical challenges concerning the satellite casino issue, saying these venues — usually located within hotels — must first have strata title registrations. Some of them are now registered with the authorities as one asset together with other non-gaming facilities of the building rather than possessing separate individual titles, he says. “If they don’t have strata titles ready, they could only be up for sale as an entire project together with other non-gaming facilities,” he reasons, which will impose more hurdles for the negotiations between the owners of these venues and gaming concessionaires.
Tying with concessionaires
Supporting the authorities to increase oversight on satellite casinos, the lawmaker from the Macau Federation of Trade Unions, the city’s largest labour group, adds officials should handle the matter cautiously, though. “These companies employ over 10,000 workers altogether, and if any of them wind down this will severely impact local employment,” he remarks. “The government should pay attention to the concerns from the industry and community… for instance, whether a grace period of three years is sufficient.” Si Ka Lon, one of the legislators from the camp of
local Fujian community — in which Chan Meng Kam, who runs four satellite casinos across the city, is one of the leaders — has suggested the new provisions only apply to new third-party promoted gaming venues while the current casinos follow the existing regime. In the perspective of Prof Fong, some satellite casino
investors could also forge closer ties with the existing gaming operators, as the draft bill proposes the managing director of gaming concessionaires has to be a Macau permanent resident with at least 15 per cent of the share capital in the firm. “It is possible to see some satellite casino owners collaborate with others for a bid in the new round of public tender,” he says.
24 APRIL 2022
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
