In Macau, a draft gaming bill currently under consideration by lawmakers will reportedly include a clause that prohibits companies with casino licenses or more than 5% of their shares from directly engaging with other locally licensed operators.
According to a report by Inside Asian Gaming, the new restrictions were revealed because the bill, officially titled "Amendment Law No. 16/2001," was joined by a subcommittee for private discussions on potential changes or additions. Sources explained that the new move is also a change from previous language that allowed licensed casino operators and their investors to hold direct stakes of up to 5% in other concessionaries.
Local lawmaker Andrew Chan-Chakmo is leading the draft review of the game bill, and reportedly argued that it is similar to the existing guidelines if there is an amendment that "shareholders who own more than 5% of each capital stock, as well as the transferee, cannot directly hold the shares of other transferees in their own name," but Rep. Lee reportedly declared that the ban does not apply to companies that indirectly hold shares in the form of funds unless it exceeds the 5% standard.
In addition, the latest update will also include language that prohibits licensed casino operators in Macau from publicly listing shares, including the Hong Kong exchange, GGRAsia reported. The source details that such restraining orders will be issued to all companies hoping to receive one of the Enclave's upcoming 10-year concessions in late December.
Chan reportedly disclosed that the move would not have a significant impact on the six clubs of the current licensed Macau casino operators, as the companies are already prohibited from listing their shares abroad. Companies such as the American giant Las Vegas Sands have even established a local subsidiary called Sands China Limited with the aim of obtaining local gambling licenses.
As for the background of the embargo, Chan told the Inside Asian Games that the government was attempting to prevent "collusion to strengthen competitiveness among adoptees." The congressman is also quoted as saying that the final top-secret meeting to discuss the draft gaming bill is scheduled for Wednesday, after which his group plans to draw up an "opinion" before submitting the document to the entire 33-member parliament.
"Five days after signing the opinion, the Legislative Council will gather to discuss and vote on the law."