Parliamentary committee to conclude gaming law discussion tomorrow
The parliamentary committee responsible for the review of the gaming law will sign its opinions tomorrow, signaling the conclusion of the discussion process.
Yesterday, after the committee meeting to discuss the latest draft of the law review, President Chan Chak Mo of the committee told a press conference that the draft will be handed to the parliament’s plenary for a second reading next week at the earliest.
In the previous draft submitted to the parliament, the government proposed that no licensee company would be allowed to be listed on the stock market, unless otherwise approved by the Chief Executive.
In this latest draft, the government made a U-turn so that no licensee would be allowed public listing under any circumstances.
The committee was told by government officials that the proposal aimed at avoiding direct or indirect sub-concessions. The ban on public listing will also make it easier for the government to take control of the situation.
Currently, all six casino operators have their acknowledged parent company’s stocks publicly listed.
The proposal on banning mixed stock holding, which refers to the situation when stock holders of a concessionaire hold the stocks of another concessionaire, also saw a reversal. The original proposal was made to ensure competition, as the government has explained.
In this draft, the government changed its proposal to prevent direct individual mixed stock holding by concessionaires’ management. Indirect stock holding, such as through funds, of not more than 5% of a competitor’s stocks, was proposed.
It was also proposed that each junket may work only with a single concessionaire. They will be paid by commission and not be permitted to share casino profits.
Another major change proposed is related to the starting capital of any company in the hopes of participating in the bid for a license.
All six casino licenses were set to come to an end in less than two weeks. The law review could not cope with this deadline, so the government decided to extend all licenses to the end of this year.
The first draft of the law review was only submitted to the parliament in January this year.
During the early phase of the parliamentary procedure, the government expressed its hope to the parliament that the law be passed in June, so that it can commence relicensing procedures as soon as possible.
