Macau's gaming credit law: CE's power and regulation changes

Macau’s gaming credit law: CE’s power and regulation changes

Added: April 8, 2024

Macau, a city well-known for its thriving gambling sector, is putting a new rule into effect that will control credit extensions for gambling-related operations.

This law gives the Macau Chief Executive more authority, enabling them to stop a casino from lending money for gambling if it’s thought to be in the major interest of the public. Nevertheless, the legislation is vague about the precise conditions that might give rise to this authority.

Additionally, the new law states that casinos themselves must provide players credit directly; they are not permitted to use middlemen like junket operators. Junket owners have fiercely opposed this shift because they typically serve as intermediaries, setting up high-rolling gamblers’ visits to casinos and frequently offering credit to them. Although junket operators and casinos can still collaborate under the new rule, the casino must control any money entailed in these agreements. Official permission will also be necessary for these arrangements.

Recently, the Legislative Assembly of Macau’s second standing committee gathered for a discussion on this measure, which was initially scheduled to take action this month but is now anticipated to take effect on the first of August. This delay most likely comes from the requirement for more time to complete the procedures and regulations associated with the new law.

Macau has adopted a more restrictive approach to the junket industry in recent years, and a number of prominent industry players, like Alvin Chau from Suncity and Levo Chan from Tak Chun Group, have been involved in legal disputes. These steps are a part of larger initiatives to improve accountability and transparency in Macau’s gambling sector.

Macau