Macau Gov´t to consider possible increase of ´satellite casino´ transition grace period

The draft bill, unveiled in January, proposes any casino operating in the city must be established in the assets “owned” by gaming concessionaires.

A grace period of three years will be given to gaming concessionaires following the implementation of the revised law to tackle the situation if they have established casinos in the assets owned by other parties. The bill adds the authorities would also recognise the legal status of “management companies” that oversee all or part of a casino of a gaming concessionaire.

The issue has been one of the most contentious proposals in the bill, with several legislators and sector representatives warning that this could mean the end for this side of the local gaming sector and loss of employment to all employees involved.

Questions over the proposed ownership of the assets by concessionaires defined — whether it requires full ownership, majority ownership or just similar a stake from concessionaires in the properties – has also been repeatedly raised.

Currently, there are 18 operational satellite casinos among a total of 40 casinos in the territory, and 14 of these third-party promoted casinos are run under the licence of gaming operator SJM Holdings Ltd while the other four are linked to Galaxy Entertainment Group (GEG) and Melco Resorts and Entertainment Ltd.

Speaking after a closed-door meeting, the head of the assembly’s second standing committee, Chan Chak Mo, revealed that Secretary for Economy and Finance Lei Wai Nong has retreated it is not the bill’s intentions to shut down all ‘satellite casino’s operations. Chan told reporters.

“They don’t want anyone to become unemployed because of this […] That’s why the three year grace period was provided to reduce this impact. Maybe some people think three years is not sufficient […] Legislators asked if the period could be increased to five years. The government did not say if it would do so, just consider”

Legislators also inquired when exactly would the three year grace period commence, with government representatives responding it would be initiated right after the new gaming concession contract comes into effect. By Nelson Moura