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Summary
- Macau casino operators concerned about joint-liability
- Legislative head clarifies amendments on joint-liability
- Legislation to be passed by Aug 2022
Chan Chak Mo, the veteran legislator of Macau’s Legislative Assembly, said that the operation of junkets and sub-agents system in the city is yet to be rolled out.
Chan’s remarks on March 11, 2022, were in response to the ‘most-asked query‘ by the city’s casino operators who are uneasy about shouldering the joint liability alongside junkets in accounting for the activities of player sub-agents when they do not have any direct association with sub-agents themselves.
Operators Seek Guidance to Comply with New Regulatory Regime
Chan, who presides over a legislative assembly committee responsible for examining an upcoming bill on Macau’s new regulatory framework for its local casino industry, assured operators that the government wished to clarify such matters. Currently, the city’s casino concessionaires are filing their documents to extend their licenses and prepare for the new public tender for gaming rights in Macau. Meanwhile, they are seeking the local government’s guidance to comply with the updated regulatory regime.
The concerns flagged by the six gaming concessionaires were regarding some specific provisions in the draft gaming law amendment. Concerning the junket-generated VIP business, gaming providers would inform the casino regulator, the Gaming Inspection and Co-ordination Bureau (DICJ), of any issues that might affect the junket’s ability to cover its funding requirements.
The issue of joint liability also covers the fact that gaming providers will be held accountable if any unlicensed collaborator or sub-agent engages any gaming business. Collaborators are traditionally roped in by junket operators to lure high rolling punters to play in the local casinos.
Chan said that the committee received written opinions from all the six casino providers on the draft gaming law amendment. The legislator, while acknowledging the queries from the concessionaires, noted that they did not directly deal with the sub-agents. It is the junkets that sign up the vendors that help to rope in high-end players. This is the reason for the unease in shouldering the joint liability. Chan conveyed that operators wished for the government to consider their concerns and make changes in the draft gaming law amendment accordingly.
Joint-Liability to be Clarified in New Junket Legislation
Chan announced further that an upcoming legislation would clear the air around the issue of joint liability. The new junket law seeks to define the scope of business of junket firms, management companies, and sub-agents.
The city’s Legislative Assembly is aiming to pass the legislation by mid-August.
