Macau’s gambling crimes law in effect from Tuesday

What is in Macau’s new Law on Illegal Gambling Activities?

Kelsey Wilhelm - October 28, 2024
agbrief.com/intel/deep-dive/28/10/2024/what-is-in-macaus-new-law-on-illegal-gambling-activities/

In large part, the new law aims to improve how illegal gambling activities are defined, the penalties involved and how criminal investigations can be conducted. However, it also introduces new types of criminal offenses – including:

Article 7 on ‘illegal online gambling’; Article 11 on the ‘operation of illegal foreign exchange for gambling’.

These not only cement Macau’s stance that it will not allow any type of online gambling but also allow authorities a legal means to pursue and prosecute those operating illegal money exchange activities.

Illegal online gambling

One key element of the new law is that there are ‘no territorial provisions defining when the operation, promotion, or organization of online gaming or online betting is considered to take place in Macau’.

The premier law firm indicates that this lack of definition means that trying to determine when an infringement takes place is then dictated by the Criminal Code.

“Considering the nature of online gaming, this will result in significant ambiguity and enforcement challenges. The fact that the offense can be committed by mere negligence will add to the potential for controversial enforcement outcomes.”

MdMe

The punishment for the offense is a prison sentence of between one and eight years, and negligible conduct is punishable by law.

MdME notes that the definition of online gambling or online betting encompasses:

Games of chance and mutual betting;

Games played or wagered remotely;

Use of electronic, computer, telematic, or interactive systems or any other means, regardless of the servers and devices being located in Macau.

Suncity, Vip, Macau, Alvin Chau

The promotion of online gambling was one of the elements in focus in the trial of former top Macau junket Suncity.

Side betting

Another element that was a focus of Macau’s top junket trial was side betting or multiplier betting. This offense will now carry a punishment of between one and eight years in prison.

For those collaborating ‘in any form in the operation of illegal games of chance’, a punishment of up to three years in prison or a fine is applicable. But the law firm points out that there is an unresolved issue, namely whether licensed gaming concessionaires operate games of chance which either have not been legally authorized ‘and therefore are not included in their respective concessions’ or have been authorized but breach approved rules. The firm questions whether in either case, these may constitute a criminal offense, ‘irrespective of being sanctioned as an administrative offense’.

Wagering on illegal games of chance is also criminalized, while even the presence in the place where an illegal game of chance is being operated is also criminalized.

Illegal mutual betting/illegal lotteries

Mutual betting – either operating a mutual betting pool that isn’t legally authorized (irrespective of whether it’s a regular activity) or betting are also criminal offenses.

Regarding lotteries, during the final passing of the bill, many comments were made about the illegal sale of lottery tickets (such as those for the Mark 6 in Hong Kong) – which could result in a fine or up to two years in prison.

Those operating illegal lotteries without legal authorization face up to three years or a fine;

Counterfeiting or ‘tainting’ lottery tickets or using or selling them also carries a punishment of up to three years in jail or a fine.

Illegal foreign exchange for gambling

In the bid to crack down on the illegal money exchangers that were highly prevalent around Macau’s casinos, authorities are now criminalizing illegal foreign exchange for gambling.

This focuses on commercial operations operated ‘stably and profitably’ and exchanges ‘made with the purpose of gambling’. This presumes that the gaming activity would take place in the casino, but encompasses the act of the exchange to ‘all adjacent areas where activities of an artistic, cultural, recreational or commercial nature or connected to the hotel industry are carried out’. The group notes this essentially includes ‘the areas opened to the public in integrated resorts or other casino complexes’.

The punishment for the crime is a prison sentence of up to five years.

Penalty framework changes

Another highlighted point was adding criminal liability for corporations or other legal entities, beyond in individuals who had committed the offense. This expands the scope to ‘legal entities and other collective bodies without legal personality,’ who are ‘now liable for the criminal offenses committed on their behalf by the members of their bodies, representatives or agents acting under the authority of the bodies or representatives’.

Legal entities can face fines of up to MOP18 million ($2.25 million) and judicial winding up.

In addition, directors and representatives of the legal entity ‘may be jointly and severally liable for the payment of the fines applicable to the legal entities provided that they are found to be responsible for committing the offense’.

Criminal investigation

The new law grants further measures for authorities to investigate suspected offenses.

This includes undercover agents, who are allowed to investigate the suspected offenses. Actions by such undercover agents ‘that may represent an offense are not punishable provided they act proportionally to the purpose’. However, they cannot incite someone to commit an offense.

The identity of informants also is not to be disclosed, but this can be lifted during trial if the court believes the information provided was false.

Domicile searches had previously generally not been allowed between 9 pm and 7 am ‘even with a court warrant’. This time limitation will now not apply ‘to the crimes of illegal operation of games of chance, illegal operation of mutual betting and illegal online gambling, considering the predominantly nocturnal nature of these crimes (the need for a prior supporting search warrant remains unchanged)’.

Highly organized criminality, will now also include ‘illegal operation of games of chance, illegal operation of mutual betting and illegal online gambling, illegal operation of lotteries, illegal lending for gambling, illegal foreign exchange for gambling, coercion for gambling and gambling fraud’. This could lead to temporary contact restrictions for those under investigation and an extension of the pre-trial duration maximum period.