No legal basis for sub-concessions in gaming
Macau lawyer Sérgio de Almeida Correia says the SAR’s government should dispense with gaming sub-concessions, according to the Macau Daily Times.
“It is important to put an end to the present sub-concession system, which creates conflicts of interest and other corrupt practices,” wrote Correia in a paper published in the May issue of Asian Gaming Lawyer. “It is therefore appropriate to plan for the future and to review the existing legal regime, if necessary by extending the number of concessions to allow direct allocation.”
He said the solution “is balanced, respects the interests of the present sub-concessionaires, and is in line with the actions of the People’s Republic of China and President Xi Jinping to fight undesirable situations that undermine the power of the state and the ethical and moral authority of those that govern vis-à-vis the governed.”
By law, he said, sub-concessions should be used only “for public works and public services,” not the gaming industry. The argument is an important one with the current concessions set to expire between 2020 and 2022.
Correia contends that “the current regime of sub-concessions is clearly detrimental to Macau’s interests because the proceeds from the agreement, which should go directly into the MSAR treasury strongboxes, will eventually end up in the pockets of brokers and intermediaries who use the licenses granted by MSAR to negotiate the terms of the sub-concessions.”
In other words, “the MSAR government is marginalized from these negotiations and takes no advantage from the income generated.” He concluded that the issue should be addressed as soon as possible as “the future will depend on it.”
