The government has told a parliamentary committee that a law will be made to codify the role of gaming intermediaries, Chan Chak Mo, president of the committee, revealed yesterday.
The Second Standing Committee of the parliament is taking part in the legislative process for the Gaming Law Amendment Bill.
After yesterday’s meeting, Chan held a press conference to discuss the session. The press conference was also attended by Secretary for Economy and Finance Lei Wai Nong and other officials.
Chan told the press conference that the government had pledged to clarify the role of each type of gaming promoters through legislation. Currently, these are codified in the form of Executive Regulations.
As the bill proposes provisions distinct from those currently stipulated in the law, the government has agreed to transform the Executive Regulations codifying the qualifications and rules for gaming promoters’ businesses into legislation.
The parliamentary committee was told that the future law will clarify the scope of business of each individual intermediary, management company and collaborator. The law must be passed by the parliament before August 15 this year, which is the end of this legislative session.
Meanwhile, the bill proposes that gaming concessionaires can pay only management fees to management companies. The former will not be allowed to share profits with, or pay commissions to, the latter.
Some committee members found the concept of management companies to be poorly defined. In response to that concern, according to Chan, Secretary Lei explained that management companies will only “manage” casinos, for example, providing security services. As such, they can only receive management fees from concessionaires. The right to operate casinos remains with concessionaries. Under the bill, management contracts would need to be approved by the Chief Executive.
The meeting also discussed corporate social responsibility, a concept proposed in the bill. Some lawmakers requested clarification as to whether more detailed provisions could be included in this regard.
In response, the government admitted the difficulty of specifying corporate social responsibility in detail in the bill. However, it welcomes bidders for casino licenses to make relevant suggestions as part of their proposals.
With respect to labor rights, some lawmakers questioned why a Labor Creditor’s Rights Protection framework has not been proposed for inclusion in the bill. Although government officials pointed out that proposals on labor rights have been included in Article 3 of the bill, lawmakers expressed a hope that provisions for Labor Creditor’s Rights Protection would be included in the future.
Labor Creditor’s Rights Protection refers to the safeguarding of workers and family members of workers who die as a result of accidents at work or other occupational causes. The government has established a fund for this purpose.
Yesterday’s meeting also covered the proposal for a maximum number of concessions. Some lawmakers asked why there is no proposal for a minimum number, to which government officials replied that the absence of such a restriction will offer the government greater flexibility. The bill proposes that no sub-concessions are to be allowed in the future.
