Under the new gaming law, future gaming concessionaires must notify the Chief Executive (CE), Ho Iat Seng, of any major investments and seek the CE’s approval before proceeding. The provision applies if investments or policy-related decisions alter the original investment plan submitted as part of the concessionaire’s bid for the license.
This was one of the points which drew the attention of the Second Standing Committee of the Legislative Assembly which is reviewing the bill in detail.
The provision, Number 11 of Article 22, says that concessionaires must “compulsorily inform the Chief Executive of decisions on major financial initiatives with a value greater than one provided in the concession contracts, before carrying them out.”
The committee president, Chan Chak Mo, noted that, although such provisions are not new, it has raised some questions about the reasons which justify such an authorization from the CE to make higher investments than initially expected.
Government representatives justified the inclusion with the need to verify both the purpose of the investment as well as to ensure that the concessionaire has sufficient economic capacity to bear such an endeavor.
“According to the government, if this [additional investment] involves a grounded commercial decision this can be authorized by the CE, but the government needs to verify if they have or [do not have] enough economic capacity,” Chan said. He added that a failure to inform the CE could result in a fine ranging between MOP2 million and MOP5 million or, in more severe situations, even the cancelation of the concession.
“Maybe the government can even revoke the license if it is considered [that the non-communicated investment] constitutes an infringement of the concession contract. It will depend on each case,” the president said.
