MACAU SAR, CHINA Law and Practice Contributed by: Pedro Cortés, Lektou
took effect on 1 January 2023, and will run through 31 December 2033. Law No 16/2022, governing casino operations, also introduces a licensing requirement for gaming pro- moters, and all casino management companies and gaming promoter collaborators must obtain authori- sations. In Macau, the operation of casino games is strictly regulated, requiring the award of a concession. Appli- cations for these concessions are permitted only when the Macau government initiates a formal tender process, which is both limited and competitive. While this process provides entry points for eligible opera- tors, it is unlikely that new tenders will be offered in the foreseeable future. Gaming Promotion Alongside the concession for the operation of casino games, the government also issues specific licences exclusively for gaming promoters who engage with the casino gaming concessionaires to support and promote gaming activities within their casinos. These licences are available for gaming promoters. Gaming Equipment The authorisation regime in Macau for gaming machines, equipment, and systems is governed by stringent regulatory requirements. Only manufacturers with authorisation from the DICJ are permitted to sup- ply gaming machines in the region. This authorisation mandates that suppliers meet high standards in terms of technical specifications, quality control, and opera- tional security. Additionally, gaming machines must comply with technical standards approved by Macau, undergo rigorous inspections, and be compatible with the electronic monitoring systems required by the DICJ. 4.5 Duration of Licences Casino Gaming Under the Macau Gaming Law, the maximum term for a gaming concession is set at ten years. How- ever, extensions can be granted in exceptional cases, 4.4 Availability of Licences Casino Gaming Concessions
allowing renewals of up to three additional years if justified and approved by the Chief Executive. Gaming concessionaires undergo a performance review every three years, ensuring ongoing compli- ance with contractual obligations. According to Article 45, the Chief Executive, with input from the Special- ised Commission for Casino Games, holds authority to terminate a concession based on several grounds, including risks to national or Macau security, mutual agreement with the concessionaire, non-compliance, and reasons of public interest. Unilateral termination can also occur if a concession- aire fails to meet critical obligations, such as abandon- ing or suspending operations without cause, unau- thorised transfers of operations, failure to pay required taxes or premiums, or neglecting investment commit- ments stipulated in the concession contract. Additionally, the Macau government retains the right to redeem or order administrative intervention (seques - tration) of a concession in specific circumstances. Should termination or redemption occur, Macau can assume control of the casinos and gaming assets, reinforcing the government’s commitment to regula- tory integrity in the gaming sector. A key transitional issue remains the status of satel- lite casinos, which must, under the law, operate from premises owned by the casino concessionaires by 31 December 2025. This ongoing adjustment continues to influence sup- ply contracts, property leases, and employment struc- tures across the sector. Some third-party-operated venues have already closed or been absorbed into concessionaire port- folios. The outcome of this transition will shape the geo- graphic and operational configuration of Macau’s gaming market for the remainder of the concession period.
277 CHAMBERS.COM
Powered by FlippingBook