CSR proposals, attracting non-Chinese bettors key in bidding process

In a recent set of executive regulations, the government has updated the stipulations regarding the bidding process for casino licenses in Macau.

The set of executive regulations was promulgated yesterday, but was enacted July 2, a day after its codification.

The set of regulations is officially referred to as the Amendments to the Executive Regulations Regulating the Public Tender for the Attribution of Concessions for the Operation of Games of Chance in Casinos, the Concession Contract and the Requirements of Suitability and Financial Capacity of Competitors and Concessionaires.

Yesterday also saw the issuance of a statement from the Executive Council (ExCo) on the discussion of the set of regulations.

Normally, the ExCo discussion should happen prior to the promulgation of executive regulations. The reason behind this delay may be the fact that public services were limited in the past two weeks.

During previous discussion of the gaming law amendments in the parliament, the government first introduced the idea of offering monetary rewards to future casino operators if the latter managed to attract non-Chinese visitors to gamble in their casinos.

This proposal, which is now law, has been included in this updated set of regulations. The plan to attract non-Chinese gamblers will add points to their grading in the bidding process.

Corporate social responsibility (CSR) was also a heated topic of debate during the parliamentary discussion. Some lawmakers asked the government to clarify details in this respect in the then-bill. In response, the government promised that it would do so in the form of executive regulations.

Pursuant to this set of regulations, the government will require bidders to submit proposals on future work in the aspect of CSR if they will be awarded a license. Therefore, it can be understood that the government is relying on bidders for suggestions.

In addition to the aforementioned issue, bidders will also need to produce documents that prove experience in casino operations and present plans for future investments in Macau – gambling and non-gambling.

Bidders will also need to present plans on casino management, as well as surveillance and the prevention of illicit activities in casinos.

This set of executive regulations complements the amended gaming law in the area of financial capabilities of bidders. It set out rules that both government and bidders are to follow in terms of financial capability inspections and disclosures.

Upon winning the bid, licensees-designate must prove that they have at least MOP5 billion in capital and deposited in local credit institutions.

This set of regulations has nullified the stipulations on management companies, which are now part of the gaming law.

The original expiry date of local casino licenses was June 26 this year. The government has made a decision to allow all licenses to be extended to the end of this year at a cost of MOP47 million per license to reflect the returns they would make during the extension period. However, Covid-19 control measures have seen the city come to a virtual standstill.