New Macau Legislation Cracks Down on Illegal Gambling

The new law targeting illegal gambling operations received unanimous approval in Macau’s Legislative Assembly. This effort represents the latest attempt by the city to reorganize its gaming industry. All 32 legislators voted in favor of the “Law to Combat Crimes of Illegal Gambling” in the Wednesday plenary session, targeting unauthorized online gambling, the running of illegal games of fortune, and unlicensed money exchanges.

Violators Will Face Harsher Penalties

The law, first proposed by the government in December 2023, is part of a broader attempt to bolster the regulation of Macau’s gaming sector, one of the city’s primary revenue drivers. The bill cleared a first reading in February before heading to the Legislative Assembly committee led by long-time legislator Chan Chak Mo.

This updated legislation marks a significant shift in how Macau approaches gambling-related crimes, expanding the scope of enforcement and increasing penalties for violators. The new law explicitly targets gamblers secretly wagering larger amounts than the declared bet in casino games, often through side agreements. This practice frequently leads to money laundering and tax evasion.

The law also provides severe penalties for several specific crimes, like the illegal operation of games of fortune, internet gambling, and mutual bets, the punishments being between one to eight years in prison. These penalties are considerably more severe than the three-year maximum for similar offenses under the old regime. The government hopes these new measures will help preserve the integrity of Macau’s gaming industry.

The Online Sector Presents Rising Challenges

Unauthorized online gambling operations, a growing issue in the digital age, have also been reclassified as a criminal offense. The law forbids the advertisement of illegal gambling and prescribes substantial punishments for individuals involved in unlicensed money exchanges relating to gambling activities. This measure also covers off-site exchanges, closing a loophole in the existing legal framework.

Another notable element of the new law is the introduction of a casino entry ban for individuals convicted of certain gambling-related crimes. The duration of the ban will depend on the severity of the crime. Other activities punishable by an entry ban include coercing others into gambling, providing resources for illegal gambling, and participating in fraudulent gambling activities, such as counterfeiting gaming chips.

The new law aims to create a legal framework adequate for Macau’s current social situation. The gambling sector remains a significant revenue contributor for Macau. The territory hopes to maintain its global reputation as a gaming hub while mitigating the industry’s unsavory aspects. Such efforts also contribute to Macau’s ongoing efforts to rebrand itself as a more family-friendly tourism destination.