Macau Gaming license

Introduction

The legal framework governing Macau’s gaming industry is the following (by sector and in chronological order):

1. Lotteries and Pari-mutuels

   • Concession Contract with Sociedade de Lotarias Wing Hing Limitada, dated 24 August 1990 and extended to 31 December 2017 (Chinese Lotteries).
   • Concession Contract with Sociedade de Lotarias Wing Hing Limitada, dated 24 August 1990 and extended to 31 December 2017 (Chinese Lotteries).
   • Ordinance no. 163/90/M, dated 27 August 1990 (Horse Racing).
   • Ordinance no. 138/98/M, dated 5 June 1998 (Sports Lottery – Football).
   • Chief Executive Order no. 62/2000, dated 27 April 2000 (Sports Lottery – Basketball).

2. Games of Chance and Fortune

   • Decree-Law no. 47/98/M, dated 26 October 1998 (Administrative Licensing Legal Framework).
   • Decree-Law no. 39/99/M, dated 3 August 1999 (article 1171 Macau Civil Code).
   • Decree-Law no. 40/99, dated 3 August 1999 (Commercial Code: gaming companies and commercial contracts).
   • Law no. 16/2001, dated 19 September 2001 (“Macau Gaming Law”: setting the general framework for the operation of games of fortune in casinos).
   • Administrative Regulation no. 26/2001, dated 29 October 2001 (sets the general terms of the public tender required to select the concessions to operate games of fortune in casinos, as well as the suitability and financial capacity requirements of bidders and concessionaires).
   • Administrative Regulation no. 6/2002, dated 20 March 2002 (sets the rules and requirements for the licensing of gaming promoters’ operations), amended by Administrative Regulation no. 27/2009, dated 10 August 2009 (regarding the payment of commissions or other remunerations to be paid by gaming concessionaires to gaming promoters).
   • Administrative Regulation no. 34/2003, dated 18 September 2003 (setting up of the DICJ).
   • Law no. 5/2004, dated 14 June 2004 (Gaming Credit Law).
   • Law no. 10/2012, dated 27 August 2012 (establishes the terms to enter, work and gamble in casinos).
   • Administrative Regulation no. 26/2012, dated 26 November 2012 (sets the rules applicable to the supply of gaming machines and related gaming equipment).

   The Gaming Inspection and Coordination Bereau ("DICJ") regulates and supervises the gaming licenses in Macau.

Legal Requirements

The following are categories of gaming activities permitted in Macau:

• gaming
  • Casino gaming (including slots and casino table games such as roulette & blackjack)
  • Poker
  • Bingo
• Betting
  • Sports/horse race betting (if regulated separately to other forms of betting)
  • Fantasy betting (payment to back a ‘league’ or ‘portfolio’ selection over a period of time, for example in relation to sport or shares)
• Lotteries
• Social/Skill arrangements
  • “Social” gaming with no prize in money or money's worth
  • b) Skill games and competitions with no element of chance

Legal requirement

Categories

Entity Requirements

The entity making the application is a Macau public limited company by shares (S.A. companies)

Director’s Requirements

• The licensee will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.
• According to the law, Licence applicants should also have a managing director who must be a Macau permanent resident owning at least 10% of the applicant company’s share capital.

Shareholder requirements

The investment fund licensee will need at least two shareholders.

Local Office

A local office is required to be put in place in Macau.

Auditor

The licensee is required to comply with all legal requirements in relation to accounting and auditing in accordance with the Law.

Minimum Capital Requirements

The Applicant must have the prescribed minimum paid-up capital of MOP200 million.

Ongoing Obligations

• The licensees are subject to daily supervision by the DICJ.
• Licensees shall, in a timely manner, pay the annual premium (due as consideration for the grant of a casino gaming concession), the special gaming tax (levied on the gross gaming revenue), the contributions (for a public foundation and for urban development, touristic promotion and social security of the Macao SAR) and all other legal taxes
• The licensees shall strictly comply with all legal requirements in relation to accounting and auditing in accordance with the Law.