Junket commission cap effective September 9

Tuesday, August 11, 2009
Issue 789, Page 2
Word count: 420
Published in: Macau Daily Times

By Poyi (Natalie) Leung

The revised administrative regulation to impose a cap on junket commission and other kinds of remuneration will come into effect 30 days from now on September 9 this year.

According to yesterday’s Official Gazette, existing contracts between gaming concessionaires or sub-concessionaires and junket promoters will need to be amended, if the junket commission rate is beyond the statutory ceiling to be promulgated next month.

The two sides will be given a deadline to draw up new contracts which will then be submitted to the Gaming Inspection and Coordination Bureau (DICJ).

Secretary for Economy and Finance Francis Tam Pak Yuen said last Saturday that he would issue a dispatch defining the maximum rate of commission payable to junket promoters once after the administrative regulation enters into force.

He also said the SAR government accepted the consensus reached by the six gaming operators and believed that setting the highest junket commission rate on 1.25 percent was “suitable” for Macau’s gaming market.

In the 27/2009 Administrative Regulation formulated by the Chief Executive, the Secretary for Economy and Finance is given the authority to set an upper limit on commission or other kinds of remuneration payable to junket promoters and also to standardise the methods of payment through the issue of dispatch.

The gaming operators will be required to hand in reports detailing the amounts of commission or remuneration paid to each junket promoter during the preceding month on the 10th of each month at the latest.

In addition, if a gaming operator pays a junket promoter more than the legal commission amount or does not follow the statutory method of payment, it could be fined 100,000 to 500,000 patacas.

The same penalty is also applied upon junket promoters vice versa.

Failing to deliver payment reports to DICJ before the deadline will be published by a 50,000 to 250,000 pataca fine.

Additional penalties could be handed down at the same time together with the fines, such as a maximum six-month suspension or even a cancellation of the junket promoter’s license, and an excerpt from the penalty decision will be published on a local Chinese and Portuguese daily for five consecutive days as well as on the DICJ website for a half-year period.

The Secretary for Economy and Finance said last week that he believed imposing a 1.25 percent cap on junket commission would attract additional investment from gaming companies, so that VIP and low-limit businesses could attain “parallel development” and Macau’s gaming industry could continue to grow healthily in the international market at large.

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