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Pursuant to the Gaming Law, the MSAR is precluded from granting more than three casino gaming concessions 3 the draft law proposal raises the maximum number of concessions to six. Notwithstanding this, the Macau government has authorised three casino gaming sub-concessions, permitting each of the casino gaming concessionaires to enter into a sub-concession the draft law proposal prohibits the sub-concessions. The suspension of the operation of a casino can only occur in very exceptional circumstances and, as a general rule, is subject to prior authorisation from the government.
The minimum age for entering, playing, and working in casinos is 21 years old. Restrictions to casino entry apply to certain categories of casino operator employees. The minimum age for participating in pari-mutuel and operations offered to the public is 18 years old, Macau's legal age. As to horse racing, the following pari-mutuels in relation to horse-racing results are permitted: pari-mutuel winner, pari-mutuel places, quinella, forecast, double win, double quinella, trio, trifecta, triplo vencedor, quarteto and six up.
Also, regarding horse-racing results, the following lotteries are permitted: cash sweep ordinary and special , winner sweep and places sweep. According to the respective concession contract, the rules for pari-mutuels authorised by the concession contract in relation to horse racing are approved by the Chief Executive after a proposal from the operator.
The rules are published in the Macau Official Gazette. If an operator requests authorisation to operate new lotteries, it shall enclose with the authorisation request a draft of the rules for the DICJ's approval. According to the respective concession contract, the rules of the Chinese lotteries authorised by the concession contract are approved by the Chief Executive after a proposal from the operator. If the operator requests authorisation to operate new lotteries, it should enclose with the authorisation request a draft of the rules for the DICJ's approval.
Casino gaming is under continuous and permanent supervision from the DICJ through a team of inspectors on site. The First Division of the DICJ's Games Inspection Department is charged with the competence to supervise and monitor casino frequency and operations, and to ensure the performance of all legal, regulatory and contractual precepts related to games of chance.
As to pari-mutuels and operations offered to the public, the Second Division of DICJ's Games Inspection Department is charged with the competence to supervise and monitor all non-casino gaming operations. Moreover, the non-casino gaming operators have a government-appointed delegate to follow the operator activities. Pursuant to Macau law, only casino operators and gaming promoters may, as credit providers, extend credit to players.
Issuance of credit is restricted to casino games of chance. The transfer to a third party of the operation of the concession or, in the case of the casino gaming concessions, of legal or contractual obligations impending to the casino operators is null and void except if authorised by the Macau government; the transfer of shares to third parties in a gaming concessionaire is null and void except if authorised by the MSAR. Under the draft law proposal, the Chief Executive may also 'annul' the gaming concession based upon:.
All casinos not exempted under the concession contract terms and gaming equipment and utensils including those outside the casino premises are to revert to the MSAR by the term of the concession or on the date referred to in the concession contract, whichever is the earlier. The reversion is automatic and without entitlement to any compensation to the casino operator.
The enjoyment, fruition and use of the assets reverted may be temporarily transferred to be used in gaming operations by the same or different casino operators, in exchange for a remuneration as prescribed by the concession contract of those assets. As to the horse racing concession, all premises except the electrical station, totaliser and all movable assets the horse-racing operator decides to remove within 60 days following the reversion revert to the MSAR without compensation by the term of the concession.
Gaming machines including electronic table games can only be operated by casino operators and shall comply with the Macau Technical Standards on electronic gaming machines and electronic table games, for accumulated prizes in gaming machines and for dealer-operated electronic table games, all approved by DICJ instructions , and be certified by an authorised gaming testing laboratory.
The supply of gaming machines in Macau can only be conducted by licensed manufacturers or distributors authorised by the DICJ. The greyhound racing concession expired in and, to date, the government has not granted any new concession for operating greyhound racing, nor has it revoked its legal framework. Nevertheless, it seems to be public policy not to award a concession for this type of gaming anywhere in the future.
Gaming, in all forms, is a highly regulated activity in Macau and the supervision of gaming activities relies primarily on the DICJ. Pursuant to Macau law, the commercial operation of gaming is reserved to the MSAR and can only be granted to private entities by means of a concession through an administrative contract.
Macau utilises a concession system not a licensing system , and the current situation is of monopoly for horse racing and lotteries which include sports lotteries , and of oligopoly restricted to six operators for casino games of chance. As to casino gaming, operators are required to be incorporated in the MSAR as limited liability companies and requirements regarding, among others, its share capital, business scope and managing director apply. Article of the Macau Basic Law states that the Macau Special Administrative Region is responsible for determining 'at its own initiative and in line with general local interests, the policy for the tourism and entertainment industry'.
Hence, gambling is regulated at the level of the MSAR which, under the Macau Basic Law, exercises a high degree of autonomy, pursuant to an authorisation of the National People's Congress of the PRC, enjoying executive, legislative and independent judicial power, including that of final appeal. Offshore gambling involving sectors such as online casinos and multiplayer online gaming is not permitted in Macau. Placing bets over the phone or online is regulated for horse racing, greyhound racing and sports lottery.
There have been some reports on international cooperation over offering online gaming to the Macau market, but it is debatable whether the betting on foreign offshore gambling platforms by Macau residents is an unlawful activity under the laws and regulations in force in Macau, as there are no grounds for acting against foreign operators when the placement of bets or wagers is made from a cross-border basis.
The main legal and regulatory framework for casino gaming, pari-mutuels and operations offered to the public comprises the following. Pursuant to the Gaming Law, the Chief Executive, by means of an administrative Regulation, determines the rules and specific conditions under which the operation of games of chance is permitted outside casinos aboard vessels and aircrafts and, restricted to gaming machines, in Macau International Airport.
However, no administrative Regulation has been enacted, nor has the MSAR authorised any operation of games of chance outside casinos. Although no greyhound racing concession is currently awarded the last expired on 20 July the above-mentioned legislation is still in force.
The Chief Executive has the highest executive power in relation to gaming matters, which can also be exercised by the Secretary for Economy and Finance, either directly or pursuant to a delegation of powers, and the DICJ. The oversight of gaming is, prima facie, the responsibility of the DICJ, the regulatory authority of all types of permitted gaming, a department within the government structure and under the Secretariat for Economy and Finance, entrusted with the responsibility of assisting in the definition of the public policy of the gaming sector and its execution, as well as for the regulation, supervision and coordination of the operation and gaming activities.
The Macau Gaming Commission is a consultative body of, and presided over by, the Chief Executive with the responsibility of formulating policies and facilitating the development of Macau's casino gaming and relevant regulatory framework. It is expected that its role be more active when the amendments to the Gaming Law are enacted. The Financial Services Bureau, under the Secretariat for Economy and Finance, is also vested with regulatory powers concerning, in particular, the accounting of gaming operators and gaming promoters.
Concurrently with the DICJ, it may determine an extraordinary audit to a casino gaming operator or a gaming promoter. The Judiciary Police, under the Secretariat for Security, has a special unit with exclusive powers to investigate gaming-related crimes committed in casinos or other gaming venues or their surroundings. The Social Welfare Bureau and the Health Bureau, both under the Secretariat for Social Affairs and Culture, handle problem gambling issues and supervises the casino smoking ban, respectively.
To date no laws or regulations on the operation of interactive gaming have been enacted. As several times announced by the government, interactive gaming seems to not be a topic on the table for consideration any time soon, in part due to the sensitive political issues it raises.
Casinos are defined under the Gaming Law as places and premises authorised and classified as such by the government. The use of 'casino' is reserved for casino operators, which can only, in accordance with the draft law proposal, operate casino games of chance in properties wholly and directly owned by them.
Also under the draft law proposal, all casinos must identify and clearly demarcate the following areas:. Exceptionally, casino gaming operators may be authorised to explore operations offered to the public.
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