Secretary for Economy and Finance Lei Wai Nong insisted yesterday that the Gaming Law review had nothing to do with the claimed serial closures of satellite casinos across the city.
He was asked to comment on the matter on the sidelines of a government event yesterday morning.
A satellite casino is a concept not defined in law but which is indeed a reality. The term refers to casinos that are operated in locations not owned by a gaming concessionaire.
Previously, the government proposed in the law review that each satellite casino be acquired by a gaming concessionaire within three years after the review is passed in parliament.
Recently, the government made a U-turn on the proposal and suggested allowing gaming concessionaires to rent locations from non-licensees.
This has been understood by the public as a move to retain satellite casinos amid a massive economic downturn during the Covid-19 pandemic.
Lei reiterated that the closure of satellite casinos was a business decision made by the respective casino owners, based on the pandemic situation and subsequent assessment of future prospects.
He did not think it was related to the law review.
Commenting on the about-face, the senior official emphasized that it was not a compromise.
He reiterated that the government would not interfere with satellite casinos’ business decisions. However, in general, the government hoped to see them retained, so as to maintain the city’s economic wealth and ease unemployment.
Speaking on the adjustment of the budget due to actual gross gaming revenue (GGR) compared with previous estimates, Lei explained that GGR in the first five months of the year differed from the government’s initial estimates.
He hoped that revenue would recover in the second half of the year, considering that this is normally a peak tourism period in mainland China. AL
