Labor, Government Clash Over Macau Table Cap

The growth of Macau’s casino industry is outstripping the city’s supply of dealers, and the situation will only get worse as Cotai expands. Importing labor would be one solution, but groups representing casino workers oppose it.

The Macau government’s cap on the growth of new table games has become the latest flashpoint in a running dispute between labor groups and the administration of Chief Executive Chui Sai On over the possible employment of immigrant workers as croupiers.

Government policy forbids migrants from working on the city’s table games, but a recent report by investment bank Morgan Stanley suggests the city’s existing workforce cannot isn’t big enough to accommodate the six new megaresorts opening on Cotai between 2015 and 2017. The report says as many as 12,600 new dealers will be needed, a 70 percent increase over the current workforce of approximately 17,600.

Secretary for Economy and Finance Francis Tam Pak Yuen has said he believes the local labor supply will be able to meet the demand, and the government has rejected calls by labor groups to codify the migrant ban as law. More recently, SJM Chief Executive Ambrose So called for flexibility on the ban, and recent remarks from Chui suggest it could be open to modification.

Two groups, the New Trade Union of Staff of Casino Companies in Macau and the Association for People’s Livelihood Rights, delivered a petition to SJM’s flagship Grand Lisboa earlier this month objecting to So’s position.

Which is where the so-called table cap comes in. Growth in new table supply is supposed to be limited through 2022 to 3 percent a year. The policy commenced in 2013 and has already been exceeded by an amount closer to 5 percent.  Labor organizations say the local workforce could cope with future demand for croupiers if the cap is strictly enforced.

One of those groups, Forefront of Macau Gaming, which has delivered a petition to the government on the issue, says it may take to the streets if it is not.

Thousands of protesters turned out on two occasions last year in support of the ban on migrant dealers. Forefront of Macau Gaming organized one of the demonstrations.

“We are asking the government whether it is committed to limiting the growth of gaming tables to 3 percent every year,” FMG President Ieong Man Teng said. “If there is no response from the government on the matter, we do not rule out taking further action, like organizing a protest at the end of this month or early next month.”

Tam has said on several occasions that the government will allow growth of over or under 3 percent in any given year as long as the number of tables in 2022 turns out to be the same as it would have been if the growth rate had been a constant 3 percent.

Ieong thinks this is just a loophole to allow “relentless gaming expansion” which will lead to casino operators demanding permission to employ migrant workers as croupiers.

“We support the enactment of a law banning migrant workers from working as croupiers,” he said. “But we believe the ultimate solution to this problem is not to let the gaming industry grow unrestricted.”