Macau’s government just unveiled the rules for the re-tendering of the region’s gambling licenses. There will be several criteria by which the government will decide whether to license a company or not.
Macau Seeks Companies that Can Revitalize the Sector
Today, the Macau government published the rules for the re-tendering of the special administrative region’s gambling licenses. The so-called Administrative Regulation 28/2022 follows Macau’s amended gaming law and will set the rules for issuing new licenses to foreign concessionaires.
One of the authorities’ priorities is to license companies that are able to attract foreign customers. Earlier this year, the government even announced that it plans to introduce tax breaks for concessionaires that successfully attract visitors from overseas.
In addition, the government said that it would prioritize companies that have interest to invest in the region. This includes investments in the gaming sector and in non-gaming related projects. The government also would prefer companies that have a traceable experience in running gambling operations and operating games of chance.
The Region Wants Concessionaires to Be Responsible
There are several other criteria by which Macau’s government will determine which companies to license. For example, the government will take a look at the companies and will carefully evaluate their casino management plan.
The special administrative region will also prioritize operators that are able to deal with casino fraud and curb illegal activities. The government is looking for companies that can successfully indentify prevent organized crime and money laundering.
Furthermore, Macau will ask companies to be socially responsible, care for their employees and prevent gambling harm among their customers.
Macau Is Facing Some Serious Challenges
Some of the rules seem to make a lot of sense considering the state of Macau’s gambling industry. Right now, the special administrative region is struggling with the devastating effects of the COVID-19 pandemic and China’s zero-COVID policy. Because of this, it becomes clear why the government wants to license companies that can bring in foreign visitors and revitalize the economy.
In addition, Macau recently cracked down on shady junkets such as the notorious Suncity Group which was found guilty of fraud and crime. Its boss, Alvin Chau, may have cheated the gambling industry out of as much as $1 billion in tax revenue, according to recent report.
Macau now wants to issue licenses to operators that comply with the rules and work diligently to prevent fraud. The region hopes that its new laws will help the sector recover, although this may take while.