The Legislative Assembly of Macau has unanimously approved new gaming credit legislation. The legislation, titled the “Legal Regime for Granting Credit for Games of Chance in Casinos,” brings significant changes to credit practices within the gaming industry and will take effect on August 1, 2024.
Under the new law, only gaming operators are permitted to extend chips to gamblers as credit. Junkets are prohibited from engaging in credit activities directly. However, gaming operators have the option to collaborate with junkets through agency appointment contracts or agency outsourcing contracts, enabling them to assist in sourcing gamblers seeking credit and earning commissions accordingly.
Any modifications to agency contracts between gaming operators and junkets, along with supplementary documents, must receive approval from the Secretary for Economy and Finance of Macau. Additionally, the Secretary holds the authority to mandate contract term adjustments based on legal principles and public interest considerations.
In cases of non-compliance by gaming operators, the Chief Executive reserves the right to revoke their qualification for credit business, citing significant public interest. If a gaming operator’s qualification is revoked, any credit provided by the law remains a legally enforceable debt.
Addressing concerns related to credit risk, the legislation mandates that gaming operators establish robust systems for controlling credit risks, maintain comprehensive records of credit activities, and implement effective mechanisms for handling customer complaints.
The unanimous approval of the new gaming credit law reflects Macau‘s commitment to enhancing regulatory oversight and ensuring the integrity of its gaming industry. The legislation aims to strike a balance between facilitating responsible gambling practices and mitigating associated risks within the sector.
This development comes after Macau recorded a 49-month high gross gaming revenue (GGR) of MOP19.50 billion (€2.24 billion) in March.
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