Macau's Gambling Industry Faces Potential Reforms with New Administration

The incoming administration in Macau is expected to bring potential changes to the gambling industry, particularly in areas such as gaming machine regulations and compliance requirements, according to JNV – Lawyers and Notaries.

Legal experts from the firm, including Jorge Neto Valente, André Santos Raquel, and Jessica Hon, provided a detailed analysis to Legal 500 about the anticipated shifts in Macau’s gambling laws.

Valente, the founder of JNV, holds significant roles in the gaming sector, serving as Advisor to Galaxy Entertainment Group and Director of Galaxy Casino S.A. He also has an extensive legal background, having served as President of the Macau Lawyers Association from 1995 to 2000 and again from 2002 to 2022.

“The last substantial change which intention had been publicly announced was enacted in October 2024 (Law no. 20/2024, on combating illegal gaming crimes). In any event, going forward, there may be amendments and new regulations at any time,” the legal analysis states.

Stricter Measures on Gambling-Related Crimes

Law No. 20/2024, which came into effect on October 29, 2024, introduces tougher penalties for “illegal lending for gambling” and defines new offenses, such as “operating illegal currency exchange for gambling.”

The legal experts also highlight the potential reform of Administrative Regulation No. 26/2012, which oversees the supply of gaming machines, equipment, and systems.

Additionally, upcoming developments in lotteries and sports betting are anticipated, particularly with the introduction of the Gaming Inspection and Coordination Bureau (DICJ)’s Electronic Gaming Machines Standards 2.0, scheduled to take effect on December 31, 2026.

“Industry players are advised to prepare for compliance, as this will impact their operations significantly,” the commentary notes.

Compliance Reviews on the Horizon

The DICJ is set to conduct a comprehensive review of compliance with casino gaming concession contracts starting January 1, 2025. This review, conducted every three years, raises questions about the implications for the stability and growth of Macau’s gambling industry.

Geopolitical factors also play a significant role, given Macau’s close ties to mainland China. Economic trends in the mainland are likely to influence Macau’s gaming sector.

Despite these challenges, JNV’s lawyers highlight opportunities arising from the 2022 casino concession contracts, which include commitments to gaming and non-gaming investments. These plans could create avenues for businesses aiming to supply goods and services to concessionaires.

“For start-ups considering Macau as a jurisdiction for their operations, the region’s status as the world’s largest land-based gaming market remains a key attraction, despite the high barriers to entry due to the need for concession contracts,” the analysis explains.

Law No. 7/2022, which amended the Gaming Law before the public tender for new casino concessions, adds another layer of complexity. This law allows concessionaires to operate existing casinos on third-party premises for a transitional period of three years, subject to the Chief Executive’s approval. The transitional phase ends on January 1, 2026, after which concessionaires must either acquire the premises or place their satellite casinos under a casino management company.

New Administration, New Direction

The election of a new Chief Executive, who will be sworn in on December 20, introduces a turning point for Macau’s gaming industry. With substantial authority to shape gaming policies, the incoming Chief Executive could introduce changes in law enforcement and regulatory frameworks. A cabinet reshuffle is also expected to impact the DICJ and the broader gaming landscape.

One key appointment is Tai Kin Ip, who will assume the role of Secretary for Economy and Finance, replacing Lei Wai Nong. Tai has served as Director of the Economic and Technological Development Bureau (DSEDT) since 2016.

At a public introduction of the new cabinet, Tai emphasized the administration’s commitment to economic diversification. “We will review the work carried out over the past five years, and while gathering consensus from various sectors, we will allocate more resources to further diversify Macau’s economy,” Tai stated.

In November, the government introduced its first comprehensive economic diversification blueprint for 2024–2028, based on the 1+4 strategy. This plan aims to increase non-gaming industries’ contribution to Macau’s GDP from 50% in 2019 to approximately 60%.

Tai’s portfolio includes oversight of the DICJ, which will see leadership changes with its current director, Adriano Marques Ho, transitioning to the role of Director General of Macau Customs.

With reforms, compliance reviews, and a reshaped administration, Macau’s gambling industry faces a pivotal period that could redefine its future. 

By fLEXI tEAM