Macau Maintains Position Against Legalising Online Gambling
The Macau government has no intention of legalising online gambling, as stated in a recent document from the Legislative Assembly. This announcement came just before the approval of the new “Law to Combat Illegal Gambling,” which specifically targets online gambling activities in the country.
The advisory report clearly states that Macau has not granted any licences to online casinos and should not consider doing so. This reaffirms the government’s firm position against online gambling, reflecting a longstanding commitment to maintaining strict control over its gambling industry. The decision underscores Macau’s focus on preserving its traditional land-based casino model, which has been a key driver of the local economy.
By keeping online gambling illegal, the government aims to protect its regulated market from potential risks, such as unmonitored gambling behaviour, financial fraud, and increased problem gambling. This stance also indicates a cautious approach towards new technological trends in the global gambling market, preferring stability and control over rapid digital expansion.
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Clamping Down Illegal Online Gambling
The new law also bans the operation and promotion of online gambling without proper authorisation. Violators can face prison sentences ranging from one to eight years, regardless of how frequently the offence occurs. The strict regulations aim to effectively clamp down on online gambling activities.
Online gambling, however, is recognised in Macau’s “Legal Framework for the Operation of Games of Fortune” under the term “interactive games.” Whilst these games can be played on various digital platforms, the country’s licensed land-based casinos are prohibited from offering these types of games. Despite the ban, illegal online casino websites continue to operate in Macau. In early 2023, police shut down one such operation. This unlicenced site reportedly generated over NZ$ 4.5 billion in online wagers between 2017 and 2023.
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Land-Based Casino Capital Of The World
Unlike online gambling, land-based casinos are legal in Macau. However, the new leader of Macau, Sam Hou Fai, believes the region should reduce its dependency on casino revenue. Macau experienced major setbacks during the pandemic when the casinos were forced to close multiple times for extended periods. To lessen this dependency on the gambling market, Hou Fai suggests Macau should focus on other sectors such as finance, tourism, trade, and traditional Chinese medicine. He argues that the government should invest in making the region more attractive to businesses looking to establish themselves there.
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Concerns About Social Challenges
The government’s position on online gambling may also align with public opinion. Whilst many in Macau consider gambling a vital part of their cultural and economic fabric, there are growing concerns about the social challenges that online gambling could bring. By restricting online gambling, the government seeks to maintain control over the industry and minimise the potential harm to society. In countries where online gambling is regulated, increased tax revenue and stronger consumer protections have been common outcomes.
These examples raise the question of whether Macau’s current approach is sustainable in the long run, especially as global competition in the gambling market intensifies. As Macau continues to tighten its restrictions, there are increasing concerns in the country that illegal online gambling might thrive. Unregulated online platforms are easily accessible for consumers in Macau.The government’s challenge will be finding a balance between effective regulation and adapting to the realities of the digital age.
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About Online Gambling Destination
Land-based casinos have been legal in Macau since 1847, when the Portuguese government, which controlled Macau at the time, officially legalised gambling to generate revenue. This move made Macau the first and only legal gambling hub in China. Over the years, Macau’s casino industry has evolved, and in 2002, the government ended the long-standing monopoly held by Sociedade de Turismo e Diversões de Macau (STDM) and opened the market to international casino operators. This significantly boosted the growth of the land-based casino industry, turning Macau into the world’s largest gambling destination.
Macau overtook Las Vegas as the world’s largest gambling destination in 2006. That year, Macau’s casino revenue surpassed that of the Las Vegas Strip, driven by its booming gaming industry and the influx of visitors, particularly from mainland China. Since then, Macau has maintained its position as the world’s most important gambling hub, largely due to its high-stakes gaming tables which generates the majority of its revenue.
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