MACAU SAR, CHINA Law and Practice Contributed by: Pedro Cortés, Lektou
Gaming Promotion The validity of a gaming promoter licence in Macau, as specified in Law No 16/2022, is initially from the date of issuance until 31 December of the follow- ing year. After the initial period, the licence can be renewed annually. Each renewal extends the licence for an additional year, contingent upon continued compliance with licensing requirements and suitabil- ity assessments. Gaming Equipment The authorisation is granted if the conditions are met, and the authorised entities shall submit an application to renew the authorisation every year to continue sup- plying gaming equipment. Additionally, a mandatory suitability review is required every six years. 4.6 Application Requirements Casino Gaming Concessions The process of applying for a concession is regu- lated by Administrative Regulation No 26/2001. As mentioned, Macau operates under a concession sys- tem. This system grants a concession to operate to successful applicants following a public tender. The process begins with the establishment of a tender committee by the Executive. Interested companies/ bidders, along with their directors, key employees and shareholders holding more than 5% of the share capi- tal, undergo a suitability and financial capacity assess- ment supervised by the DICJ before receiving authori- sation. Once the public tender is concluded and all requirements and criteria are met, a concession con- tract is signed between the concessionaire and the Macau government, providing further legitimacy to the casino gaming concessionaire’s operations. Gaming Promotion Licence As for the gaming promotion activity, Law No 16/2022 lays out rigorous conditions to ensure that only quali- fied entities meet the standards to be licensed as gaming promoters, with requirements on corporate structure and purpose, financial capacity, residency and ownership, suitability, existence of an operational agreement, as well as a guarantee to ensure compli- ance. The following provides a summary.
• The entity must be a legally established company in Macau, specifically structured as a limited liabil- ity company by shares. Importantly, its exclusive business scope must be limited to gaming promo- tion. • Applicants are required to maintain a minimum capital of MOP10 million (approximately USD1.25 million), fully paid in cash upon incorporation. This capital threshold must be maintained throughout the licence period to ensure financial resilience and responsibility in operations. • At least 50% of the company’s share capital must be owned by Macau permanent residents who are at least 21 years old. Additionally, all shareholders must be individuals legally capable of exercis- ing their rights, ensuring local representation and accountability. • The company, along with its major sharehold- ers, directors, and key employees, must undergo a suitability review conducted by the DICJ. This assessment checks for financial stability, outstand- ing debts, unresolved legal fines related to gaming, and the absence of any bankruptcy or insolvency history among stakeholders. • Applicants must secure an agreement with a licensed casino concessionaire to provide gaming promotion services. This partnership must be for- malised and is a crucial prerequisite for obtaining the promoter licence. • To ensure compliance with Macau’s stringent gam- ing regulations, promoters must provide a financial guarantee as stipulated by law. Gaming Equipment Authorisation To secure authorisation from the DICJ, gaming machine manufacturers must provide comprehen- sive documentation, including proof of authorisation from relevant jurisdictions, records of compliance, and details of authorised machine models. Additionally, applicants must submit a notarised legal declaration affirming the standing of existing licences and a full disclosure of ownership structure, focusing on stake- holders with 5% or greater capital involvement. 4.7 Application Timing Casino Gaming Concessionaires For casino gaming concessions, the timeline follows the schedule set out in the public bidding rules, which
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