MACAU BUSINESS By Tony Lai By Paolo A. Azevedo


Jeju – the new Singapore


Screws tightened


Two newly approved gaming legislations - the gaming credit law and the proposed bill combating illegal gaming crimes - form part of the government’s initiatives to foster the healthy development of the gaming industry amidst a challenging operating environment for local junkets. Experts downplay the impact of the new acts on gaming revenue.


M


ban on operating their own VIP rooms and cages in casinos, restrictions on working with only one gaming concessionaire instead of all concessionaires, and the prohibition of the gaming revenue-sharing model with concessionaires. These are among the new regulatory constraints recently imposed on Macau junkets as part of the broader restructuring of the gaming industry, as the authorities aim to improve oversight and control the sector’s uninhibited growth. In August, an additional ban will be imposed on casino junkets, also known as gaming promoters, which will be prohibited from extending credit to gamblers. A bill revising the rules about the issuance of casino gambling credit was approved for a second


A 18 OCTOBER 2017 30 JUNE 2024


acau Business – From Lotte World, a major recreational complex [with the world’s largest indoor theme park, in Seoul] to an integrated resort with casino in Jeju. A different beast. A


natural evolution? Lawrence Teo – Business is the same. But building


a landmark. M. B. – The group [Lotte] has created other landmarks in different types of business. Why would this be different? L. T. – Yes, Lotte Group has already created


downtown Seoul and Lotte Super Tower. We’re trying


and final reading at the Macau Legislative Assembly in April. The “Legal Regime for the Granting of Credit for Games of Chance in Casinos” will come into effect this August, replacing the existing rules that have been in place for two decades.


One of the significant changes in this legislation is that only the city’s gaming concessionaires will be exclusively allowed to extend credit for casino gambling, ending the decades-long business practice of junkets. The authorities have explained that these changes are in line with the new role of junkets, as stipulated in the regulations on junket activities that came into effect last year.


These changes also help manage the risks associated with credit issuance, according to the authorities. The bill states gaming


want to achieve with this Integrated Resort (IR)? L. T. – Number one EBIDTA on IR in Korea. There’s


concessionaires will only be able to grant credit to gamblers after conducting thorough risk assessments and maintaining relevant records, while all credit activities will be subject to supervision by the Gaming Inspection and Coordination Bureau (DICJ).


The revision also grants the Macau Chief Executive the authority to terminate gaming concessionaires’ ability to extend credit to gamblers based on public interest reasons.


ANOTHER SETBACK


“The only role that, under the new law, the gaming promoters remain entitled to perform is limited to being a representative or agent of a casino concessionaire in the context of the latter’s credit granting activities,” lawyers Francisco Sá da Bandeira and Rui Pinto Proença


Jeju will be as big as Singapore in terms of Gross Gaming Revenue, predicts Lawrence Teo. The Chief Operations Officer and Vice President of Dream Tower, the tallest Integrated Resort under construction on the Korean destination island, explains to Macau Business why Lotte Tour decided to enter the casino business and create a landmark. All bets are on making the casino resort the crown of the tourism jewel the company has been dominating for four decades


to do the Dream Tower in Jeju. Lotte here is being just a family company; we’re a different company [Lotte Tour]. It’s not going to be [just] the tallest and the largest building in Jeju, that’s just the hardware. We say that a landmark should be the most visited destination, where tourists will go to eat, shop and maybe [visit] our observation deck. A must-visit point destination. Because of the hardware, and also the software.


M. B. – What are the main goals that you definitely


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