In Macau and legislators are reportedly preparing to chuck out a provision within the under-consideration draft gaming bill that would prevent anyone with more than a 5% shareholding in a local casino operator from investing with any rival firm.
According to a report from GGRAsia, this possible concession was revealed by local legislator Chan Chak Mo as the former Portuguese territory’s proposed Amendment to Law Number 16/2001 continues to be subjected to behind-closed-door deliberations. The source detailed that this figure is leading the committee tasked with scrutinizing the proposed legislation that will regulate the enclave’s lucrative casino industry for the next decade.
Aim adjustment:
The Legislative Assembly member reportedly disclosed that his committee is moreover likely to alter a proposed measure within the draft gaming bill that would establish minimum gross gaming revenue targets for Macau’s six-strong club of licensed casino operators, which encompasses SJM Holdings Limited, Galaxy Entertainment Group Limited, Sands China Limited, Wynn Macau Limited, Melco Resorts and Entertainment Limited and MGM China Holdings Limited. The legislator purportedly declared that he is in favor of an amendment that would give local authorities the ability to alter these margins in the event of ‘force majeure’ or ‘unpredictable’ circumstances.
Penalty provision:
As previously reported, the language contained within the
current version of the draft gaming bill would require licensed casino operators to meet predetermined revenues targets or be obliged to forfeit a ‘premium’ of any difference between their actual and expected tax bills. Macau is home to some of the world’s largest and most famous gambling venues such as the iconic Casino Grand Lisboa from SJM Holdings Limited and currently charges every one of these facilities a 35% gross gaming revenues tax alongside smaller duties for every live dealer table, gaming machine and VIP room they operate to take the effective rate up to roughly 39%.
Accepted affiliation:
Chan reportedly told GGRAsia that the removal of the investment directive would allow Macau casino operators to take advantage of normal business practices although the government and its Gaming?Inspection and Coordination Bureau regulator would remain on the lookout for ‘unfair market competition.’
Eminent examples:
GGRAsia reported that the cross-shareholding issue came to prominence in Macau some four years ago when Galaxy Entertainment Group Limited acquired an estimated 4.9% stake in Wynn Resorts Limited, which is the Las Vegas-headquartered parent of Wynn Macau Limited. This topic was purportedly furthermore mentioned in the past with regards to local casino magnate Pansy Ho Chiu King, who controls a large shareholding in MGM China Holdings Limited while simultaneously holding indirect interests in SJM Holdings Limited.