Gaming credit bill expected for final vote in April

The casino credit bill currently under discussion at a parliamentary committee is expected to undergo its second reading next month, committee president Chan Chak Mo said yesterday.

The bill’s updated draft is being studied, following adjustments made by the government.

A major change is that, compared with current practices, casino intermediaries or junkets will no longer be permitted to issue credits or loans, should the bill become law.

On this matter, Chan disclosed that the committee had received signed objection letters from casino intermediaries, and the letters had been referred to the government for the latter’s consideration.

According to Chan, these intermediaries consider the current practice effective and helpful to the Special Administrative Region in terms of tax income.

Concurrently, the committee is starting to prepare its responses.

Chan said the government had submitted to the committee a written explanation of the major change, and committee members accepted most of it. In addition, some members wondered what credit channels would be legal.

In response to this, Chan cited the bill as stating that only licensed casino operators would be permitted to issue credits in the form of casino chips. Cash credit would not be allowed. An exception, Chan said, would be that intermediaries with contractual obligations to any licensed casino operators would be allowed to issue credits on behalf of those casinos in the form of their chips.

Such cooperation contracts would need to be approved by the Secretary for Economy and Finance before being witnessed by a notarial staff or lawyer.