Inside Asian Gaming

INSIDE ASIAN GAMING DECEMBER 2018 84 was giving back to society,” adding that “critical thinking in the University is not enough – we need to learn from other people.” It was with this in mind that the two-day conference combined discussions on current Macau gaming law with a look at similar renewal and retendering experiences in Africa, Europe and America. Topics included the validity of the current model of concessions and sub-concessions, the role of junket operators and the social and economic impact of the industry on the city. RENEWAL V RETENDERING Long-time STDM lawyer Dr Rui Cunha observed that such discussions made a lot of special sense right now given that Macau is less than two years away from the seeing the first 20-year gaming licenses – those held by SJM Holdings and MGM China – expire in 2020. “It is a good time to decide what we want and how we want it for the next two decades,” he said. Dr Cunha, who played a key role in shaping Macau’s current gaming law, was quick to point out that this will be a retendering process, not a renewal of licenses. Were operators simply facing a renewal, there would likely be little change, however with a new tender comes the possibility that the Macau government will modify the requirements needed to apply for a new license, and those could have an impact on how the law itself is written. As it stands, the licenses of all three concessionaires – SJM Holdings, Galaxy Entertainment Group and Wynn Macau – as well as their respective sub-concessions in MGM China, Sands China and Melco Resorts will expire by 2022, meaning the current legal cycle will peak at the same time, making it the ideal point at which to introduce changes to Macau gaming law. Luís Pessanha, a part-time lecturer at the Faculty of Law of the University of Macau and legal adviser to the Legislative Assembly, stated there is a widespread view among legal experts that Law 16/2001 will need to be amended when 2022 arrives. The bill defines the concession terms and, according to Pessanha, an amendment delaying the re-tendering process to 2025 would remove the concept of sub-concessions and turn all current operators into “fully-fledged concessions.” Changes to the law could also open the door for a public tender that could see new operators granted licenses, he added. Regarding fiscal policy, Pessanha commented, “Macau has fiscal room to maneuver” from its current effective tax rate of 39% while “the local gaming industry is still so profitable that it can withstand a reduction in the tax rate.” However, he added, “we could do it but I don’t see any reason for it yet” given that Macau enjoys a solid position among regional peers and there is therefore no real need to grant fiscal help to operators. “The local gaming industry is still so profitable that [Macau] can withstand a reduction in the tax rate. We could do it … but I don’t see any reason for it yet.” – Luís Pessanha Speakers from the 11th International Conference on the Legal Reforms of Macau in the Global Context FEATURES