Japan Policy & Politics: Macao plans to issue 3 gambling licenses after monopoly ends

HONG KONG, July 13 Kyodo

Macao plans to open up its lucrative gambling sector to up to three operators when the monopoly of Macao Tourism and Amusement Co. expires by the end of this year, the territory's government said Friday.

The license holders will be allowed to operate for periods of between eight and 20 years, with the possibility of their licenses being renewed, according to a bill on the gambling industry.

Individuals or companies, including those from overseas, who want to tender for a license will have to first set up a shareholding company in the former Portuguese colony, the Macao administration said.

The bill, endorsed Friday by the Executive Council, the top advisory body of Chief Executive Edmund Ho, will be tabled in the Legislative Assembly for examination next week.

A spokesman for the Executive Council, Tong Chi-kin, anticipated the tax level of the future gambling business operators will not be less than the present 31.8%.

Tax levied on the gambling industry has been contributing to a major part of the enclave's fiscal revenue.

Macao Tourism and Amusement, which has monopolized the gambling sector for 40 years, currently runs 10 casinos, as well as horse and greyhound races and a number of lotteries.

Following Macao's return to Chinese rule in December 1999, the territory's government decided to open up the industry when the firm's contract expires.

Meanwhile, the government also said Friday that those who want to run interactive gambling businesses, such as through the Internet, telephone or fax, will have to apply for separate licenses.