Macau to submit draft gaming bill
The Macau government reportedly said it plans to use Monday's plenary session for the region's legislative session to formally submit a draft gaming bill.
According to a report by GGRAcia, the bill introduced will be sent to the subcommittee for discussion on potential changes or additions after the first official reading . The source detailed that the process would be followed by a second and final reading before a 33-member committee before a debate and final vote.
Andre Cheng Wongchon is reportedly serving as Macau's administration and justice minister, and reports say the whole process may not be completed ahead of the expiration of the current license held by six clubs of Macau casino license holders . But he also reportedly explained that the Heit Seng administration was prepared to consider a short-term extension if legislators failed to ratify the bill before this deadline.
Macau has reportedly been working for years to update existing regulations on gaming, although a draft gaming bill now suggests keeping the existing limit at six regarding the number of companies that can operate local casinos. The Club is currently known to include SJM Holdings Limited, Galaxy Entertainment Group Limited, Melco Resorts and Entertainment Limited, MGM China Holdings Limited, Las Vegas Sands Corporation and Wynn Resorts Limited, as well as local Sands China Limited and Wynn Macau Limited.
GGRAsia reports that it is widely believed Macau will allow the current casino business license to be extended for another 10 years until June 2032 following the completion of the new bidding process. However, the draft Gaming Bill reportedly calls for companies to increase their minimum capital requirement from about $25 million to about $623 million while keeping the effective tax rate at about 39%.
Another change reportedly included in the draft gaming bill is the de facto abolition of satellite casinos and sub-operators by requiring all gambling operators to do business outside the premises owned by one of the six operators. In addition, the draft bill reportedly requires that licensees undergo formal reviews three times a year and prohibit them from engaging in profit-sharing transactions with junket companies and outside management companies.