Inside Asian Gaming

INSIDE ASIAN GAMING | October 2010 18 Macau Policy I s the Macau government being deliberately difficult with its casino operator guests? The question arises because everywhere one looks in the realm of public policy, the government seems to be placing obstacles in the path of the operators rather than smoothing the way for them. The two obvious examples are Macau’s restrictive policy on labour importation for the new Cotai resorts being built by Galaxy Entertainment Group and Sands China, and the cap on the number of live tables allowed in the market between now and the end of 2012. All kinds of elaborate theories have been advanced regarding the attitude of Beijing and Macau to development of the gaming sector in Macau, and where the labour and table cap policies might fit in that scenario. Could a simpler explanation be that Macau’s leaders are motivated by fear of losing control of their community to foreign commercial interests? It happened in China on a grand scale in the 19th century, and modern Chinese are well aware of that bitter lesson. Consider the following proposition in relation to the modern situation. The leaders of several of the major public gaming companies based in Las Vegas probably have more leadership experience and access to more legal brainpower than their counterparts on the Macau government side. To the best of Inside Asian Gaming’s knowledge, the current Macau Chief Executive Chui Sai On doesn’t regularly fly around in a private jet. Even in sovereign nations such as the United States and the countries of the European Union, powerful business leaders can give national governments the runaround. So why would Macau, with its new, relatively inexperienced civil administration, want to compete with big business on its own terms? Decrees decried Macau has legally regulated aspects of its gaming industry, such as the control of junkets. But in terms of administrative policy on broader policy issues, the Macau market is controlled by decrees issued by the territory’s Chief Executive, with policy advice provided the Executive Council, made up of the main departmental secretaries. The Legislative Assembly does have some lively debates widely reported by an active local media. But with a hybrid electoral system based partly on direct suffrage, but mostly by election of lawmakers via so-called functional constituencies (a sort of ‘butcher, baker, candlestick maker’ approach to representative government), the lawmaking body tends to rubber stamp decisions coming from the CE’s office. If loss of control to international commercial interests is what Macau’s current community leaders fear most, then what incentive is there for those leaders to set up a Western-style system for policy formulation and regulation of the gaming industry? Setting up such a transparent system based on Western norms would arguably play to the very strengths of Western corporate business. Any operator wishing to challenge a government policy or ruling made under such a Western-style system would be able to bring to bear all the firepower of their best Taking on the Jet Set Macau’s leaders may be motivated more by anxiety than malice in their attitudes toward casino operators Chui Sai On—not so likely to fly by private jet