Online Gaming Not in the Cards in Macau
The Macau government has confirmed that it has no intention of granting a public concession for online gaming. This stance was clearly outlined in an official opinion document issued by a committee of the city's Legislative Assembly ahead of the passing of the latest gambling reforms.
The MGM Cotai casino resort in Cotai, Macau, at night. (Source: Macao News)
LISTEN TO THIS ARTICLE:The law, "Law to Combat Crimes of Illegal Gambling," passed through the legislature on October 17. According to the subsequent update from the committee, the government reiterated that it has not granted any concession for online gaming or betting and has no plans to do so in the foreseeable future.
Alongside this position, the new law addresses unauthorized online gambling, making it illegal to operate or promote any form of online gambling in Macau without prior government authorization. The law sets harsh penalties for those found guilty of engaging in illegal online gambling activities, with convicted offenders facing prison sentences ranging from one to eight years.
The severity of the punishment applies regardless of whether the illegal activity is conducted regularly or as a one-time offense. The inclusion of these measures was designed to effectively curb the rise in online gambling, which has been on the increase in recent years, according to the Legislative Assembly's document.
The new legal measures distinguish between illegal online gambling operations and the concept of a public concession for online gaming. While there is no movement toward granting concessions, Macau's existing legal framework does acknowledge the existence of "interactive games."
These games, which are part of the "Legal Framework for the Operations of Casino Games of Fortune," refer to any form of gaming that involves playing for cash or other value using electronic means such as telephones, the Internet, or data networks. Despite this recognition, the framework explicitly forbids the city's licensed casino operators from offering such interactive gaming services.
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Macau's six licensed casino operators, which began new 10-year concessions in January 2023, are prohibited from running interactive gaming operations under the city's gaming laws. This prohibition reflects the government's cautious approach toward online gaming, as it seeks to maintain strict control over gambling activities within its borders. Although the concept of interactive games is acknowledged within the legal framework, the government's firm stance against issuing online gaming concessions means that these forms of gaming are not permitted in Macau.
The tightening of regulations comes as Macau grapples with a growing trend of online gambling, which authorities are keen to suppress. The Legislative Assembly's opinion document emphasized that the inclusion of strong penalties for unauthorized online gambling is meant to ensure effective action against such activities.
These measures underscore the government's determination to prevent the spread of unregulated online gambling, which is seen as a threat to Macau's tightly controlled gaming industry. The new law reflects the government's intent to ensure that any form of gambling remains strictly under its regulatory oversight, both in physical and digital environments.
As online gambling continues to grow globally, Macau's decision to steer clear of legalizing or granting concessions for online gaming stands in stark contrast to developments in other jurisdictions where online gaming is increasingly being integrated into the broader gaming market. For the time being, Macau remains firmly committed to maintaining its status as a hub for physical, land-based gaming activities, with no plans to explore online gaming within its regulated gambling market.
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