Dore Group theft prompts proposals to amend junkets’ regulation

Dore Group’s embezzlement scandal has prompted the government and scholars to propose amendments to the regulation of junkets.
On Monday, the Gaming Inspection and Coordination Bureau (DICJ) made its second statement pledging to tighten its oversight of the industry as it also reviews the existing laws.
The authorities’ three major focuses of revision are: introducing new requirements to middlemen for declaring their accounts, shares and capitals; assessing the background of junkets’ shareholders; and making it mandatory that only legally qualified staff are allowed to take up financial roles.
Agreeing with the DICJ’s inclination were the Secretary for Economy and Finance, Lionel Leong, and Davis Fong, director at the University of Macau’s Institute for the Study of Commercial Gaming.
On the sidelines of a conference with the Economic Development Committee, the Secretary told media that he would formulate a set of internal instructions for the gaming industry “in the shortest time” to facilitate a move towards sounder regulations.
“I believe it’s also necessary for relevant departments to communicate with the sector to ensure that the guidelines suffice in terms of monitoring the industry while keeping in line with operations,” said the Mr Leong.
If the guidelines prove effective, the authorities would manage to remove the grey areas in junket operation, with changes to be made to the existing laws.
“Healthy junket operation is linked to the whole development of the gaming industry,” he explained.
The institute head welcomed the government’s decision, but cautioned that a meticulous approach was necessary.
After identifying the crux of the controversy – the fact that individuals offered their funds to a party that was unauthorized to accept savings – Fong suggested that it was legally protective to invest in the company as a “legally recognized investor.” Besides, another alternative was loaning to junkets, which was also under protection of the law.
Saying that a consensus had to be reached with the stakeholders in the industry first, he also agreed to update relevant laws in order that they could correspond with current circumstances. “Suppose we can’t resolve the issues in a short time, let’s give it a little time for the transition,” he conceded.