Anticipated Reforms in Macau's Gambling Legislation Amid New Leadership

The landscape of Macau’s gambling regulations is on the brink of potential revisions alongside the arrival of the new administration. Lawyers from JNV – Lawyers and Notaries have scrutinized this situation, especially with regard to the provision of gaming machines and adherence to compliance requirements. In their analysis, experts, including Jorge Neto Valente, André Santos Raquel, and Jessica Hon, forecast further alterations and new statutory frameworks within the sector. A noted figure in the gambling scene, Valente serves as Advisor to Galaxy Entertainment Group and director of Galaxy Casino S.A. He also served as President of the Macau Lawyers Association at two separate intervals between 1995 and 2022. The emphasis from the analysis signifies that ‘the last substantial change which intention had been publicly announced was enacted in October 2024 (Law no. 20/2024, on combating illegal gaming crimes). Going forward, there may be amendments and new regulations at any time.

Potential Legal Shifts in Macau's Gaming Industry

The newly implemented Law No. 20/2024, effective since October 29th, 2024, has heightened measures against gambling crimes, introducing stricter penalties for 'illegal lending for gambling' and creating new offenses such as 'operating illegal currency exchange for gambling.' Another substantial area poised for reform is the revision of Administrative Regulation no. 26/2012, which currently shapes the delivery of gaming machines, systems, and equipment.

Furthermore, legal analysts predict potential advancements in lotteries and sports betting with the looming implementation of the Gaming Inspection and Coordination Bureau (DICJ)’s Electronic Gaming Machines Standards 2.0, slated for December 31st, 2026. This change is expected to significantly influence operational compliance across the industry, prompting early preparation from relevant stakeholders. The DICJ also plans to commence reviewing compliance with casino gaming concession contracts beginning January 1st, 2025. This periodic review, conducted every three years, brings uncertainties surrounding Macau’s gaming market’s stability and expansion.

With Macau’s economic dynamics closely linked to mainland China, fluctuations in economic trends could greatly affect local gaming activities. Yet, the 2022 signed casino gaming concession contracts reveal ambitious plans extending to both gaming and non-gaming sectors, which could open avenues for businesses offering goods and services to these entities. For aspiring enterprises considering establishing in Macau, the region remains a lucrative option as the world’s foremost land-based gaming industry platform. This is despite substantial constriction entered due to stringent concession contract requirements. Following amendments under Law no. 7/2022 before the public tender for new casino concessions, new concessionaires are granted temporary authorization to operate existing casinos on third-party properties, subject to the Chief Executive’s approval, until January 1st, 2026.

Impact of New Leadership on Gaming Regulations

As Macau welcomes its newly elected Chief Executive, to be inaugurated on December 20th, 2024, the gaming industry faces promising yet uncertain transitions. This leadership shift encompasses robust authority in spearheading gaming policies and may bring forth adjustments in law enforcement and existing regulations. An overhaul in cabinet Secretaries may further influence the DICJ and reshape the broader gaming environment. Among the new faces in the administration, Tai Kin Ip has been appointed as Secretary for Economy and Finance, succeeding Lei Wai Nong. Tai, who previously held the Directorship of the Economic and Technological Development Bureau (DSEDT) since 2016, brings a wealth of experience to this critical portfolio. Upon introduction by Chief Executive Sam Hou Fai, Tai emphasized a commitment to allocating resources toward advancing 'appropriate economic diversification.'

November saw the release of the government’s inaugural comprehensive diversification strategy for 2024–2028, rooted in the 1+4 paradigm. This initiative targets an increase in contribution from non-gaming industries to approximately 60% of Macau’s GDP, up from roughly 50% in 2019. Tai’s remit also covers oversight of Macau’s key gaming sector, under the jurisdiction of the Gaming Inspection and Coordination Bureau (DICJ), which is set to witness a change in leadership. As Adriano Marques Ho, the current DICJ director, transitions to the role of Director General of Macau Customs, these developments mark significant shifts in regulatory focus and operational governance for Macau’s gaming frontier.

Source: Potential legal gaming reforms loom as new Macau administration takes office: Lawyers - AGB, Asia Gaming Brief, December 2024.