Macau Implements Stricter Regulations on Gaming Credit Breaches

Macau, known as the gambling capital of the world, is set to tighten regulations on gaming credit with the introduction of a new bill. Under the proposed legislation titled “Legal regime of credit concession for gambling in casinos,” the Macau SAR Government aims to crack down on any breach of the credit law by concessionaires. 

Gaming Credit Regulation Violations Carry Hefty Fines for Concessionaires and Junkets

The bill outlines that only concessionaires will be authorized to issue gaming credit, while casino management firms will be strictly prohibited from engaging in such practices, reported Asgam. However, licensed junkets will be permitted to enter into agreements with concessionaires, enabling them to extend credit to players.

To ensure proper supervision, the Gaming Inspection and Coordination Bureau (DICJ), Macau’s gaming regulator, will oversee the credit activities of concessionaires and any associated junkets. The bill empowers DICJ’s supervisory staff to conduct monitoring duties at any given time without prior notice. It emphasizes that concessionaires must grant access to the monitoring officers and facilitate their work.

As part of the bill’s penalty scheme, severe consequences await those who violate the regulations. If a concessionaire conducts credit operations through a third party or transfers credit qualifications, they could face fines ranging from MOP2 million to MOP5 million ($246,000 to $615,000). Junkets found to be in violation of relevant regulations may be subject to fines ranging from MOP600,000 to MOP1.5 million ($109,000 to $185,000).

Enhanced Obligations for Credit Entities in Macau’s Proposed Gaming Credit Law

In addition, the bill introduces an article, which outlines the general obligations of credit entities. According to this provision, both concessionaires and gaming junkets must establish a robust system of credit risk control and conduct credit business in a prudent manner. They are also required to maintain a clear record of credit activities and implement data protection measures. Furthermore, a mechanism for handling customer complaints must be established to ensure effective resolution.

The proposed amendments to the credit law were initially announced by the Macau Executive Council, and the latest version of the bill has been made available on the website of the Macau Legislative Assembly for public scrutiny. DICJ Director Adriano Marques Ho confirmed that the bill is still in draft form and will be subjected to scrutiny and voting by the Legislative Assembly.

With these new regulations, Macau seeks to strengthen its oversight of gaming credit activities and ensure the integrity of the industry. By holding concessionaires and junkets accountable for their credit operations, the government aims to maintain a transparent and responsible gambling environment in the region.