The legislature approved the Macau gaming overhaul law that would increase the government oversight of gambling operations in the city. The Legislative Assembly passed the bill after a final vote last Tuesday.
After passing the new law, officials will start the new casino license application process. The existing licenses will expire at the end of the year. Also, the new law will allow officials to punish operators for almost anything, such as threatening national security to low revenues.
Gaming tax rates will also increase from 39 percent to 40 percent. In addition, new licenses will last for ten years, down from 20 years of the current permits. The gambling law overhaul came after Beijing told Macau to lower its dependence on gaming revenue. Also, Beijing wants Macau to diversify into other industries, including finance, technology, tourism, and Chinese medicine.
Macau Gaming Overhaul Law
According to experts on online casino strategies, Beijing also intensified its crackdown on junket operators and the high-rolling sector of the industry. Also, the government wants to prevent the outflow of capital.
Currently, the casino operators have their existing licenses extended temporarily until the government finalizes the application process. They are still working on the licensing fees and what the government expects from the operators regarding their non-gaming investment.
Operators are also waiting on whether they can hold ownership of the gaming areas or if they can lease them. According to live dealer casino operators, the changes came as Macau suffered from a tourism drought.
Casinos lose millions of dollars daily as Macau fails to attract tourists. It seems as if people prefer to play online slots instead of traveling. Thus, gambling revenue dropped 97 percent during the pandemic. Also, it was down 87 percent in May due to the lockdowns in China.
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