Macau - DICJ and Concessions
Overview
Macau is the only jurisdiction in China where casinos are legal. Supervision is carried out by DICJ (Gaming Inspection and Coordination Bureau). After the 2022 reform, 10-year concessions (2023-2032) for six operators came into force, with increased control, new limits and a focus on diversifying the economy through non-gaming projects.
Regulator and legal framework
DICJ role
DICJ monitors the operation of games, approves key parameters of activity (turnover of chips, accounting, equipment), maintains statistics on casinos, tables and slots, and also monitors compliance with the terms of concessions.
Basic Laws and Amendments (2022)
Amendment to Law 16/2001 (Law 7/2022): reduced the term of concessions to 10 years, strengthened the suitability test, introduced new requirements for "key employees," settled the status of management companies and game promoters.
Law 16/2022 (casino operations): set the license mode for gaming promoters (ex. junkets) and their employees; deposit services of junkets are prohibited, joint responsibility of concessionaires is strengthened.
Concessions 2023-2032: who and on what terms
Six operators
A maximum of six operators with 10-year concessions - SJM, Galaxy, Sands China, Wynn Macau, MGM China, Melco - received an extension/reissue for the period January 1, 2023 - December 31, 2032.
Non-gaming obligations
A key innovation is large non-gambling investment commitments (MICE, parks, museums, technology, sports/culture). The total volume is about MOP 108.7 billion over 10 years with "triggers" for an increase when reaching the target GGR. Already at the end of 2023, the requirement for an increase of 20% worked.
Tax model
Direct tax - 35% of GGR; together with mandatory targeted contributions to socio-economic development, the effective rate is close to ≈39 -40%.
Junkets and VIP: what has changed
After high-profile cases against the largest junket groups, the former VIP model was de facto dismantled. New regime for game promoters: licensing, ban on independent deposit services, expanded responsibility of concessionaires for the actions of promoters and collaborators. The market has shifted to mass-market and premium mass.
Tables, slots and platforms
DICJ sets and publishes indicators for the number of tables/slots and casinos; there are limits and approvals in terms of chips and their circulation (up to permissions for the total maximum in circulation). A course is supported to optimize the product mix structure (more mass-oriented positions).
Anti-laundering, payments and shadow services
Macau authorities have consistently tightened controls on unapproved foreign exchange services in and around casinos, reducing the space to bypass capital controls and gray settlements. In parallel, there is a general Chinese course to combat cross-border gambling.
Economic dynamics and shift in income structure
The restoration of tourist flow after covid restrictions was accompanied by recalibration: less dependence on VIP, more on the mass player and non-gaming activities, which improved the margin of operators and the predictability of tax revenues.
What's Important for B2B Providers and Operators
1. Strict DICJ and suitability control. Key employees, contractors, promoters - under suitability tests and separate admission. Plan compliance pools and background check procedures.
2. Non-gaming KPI contracts. Any projects (MICE, entertainment, sports, culture, tech initiatives) should "highlight" diversification, local employment and tourist flow.
3. Anti-laundering and calculations. Exclude unauthorized exchange/cache transactions, hard segment high-risk operations, build reporting.
4. VIP model ≠ the same. Work with promoters - only according to the new licensed regime, without deposit services and with the extended responsibility of the concessionaire.
High-level checklist
Sign and maintain internal policies on Law 16/2022/7/2022 (operations, promoters, key roles).
Lay down a budget and KPI for non-gaming initiatives as part of a concession/sub-projects.
Synchronize table/slot limits and chip turnover parameters with DICJ; provide accounting/reporting.
Strengthen KYC/AML and control over third-party cash/currency exchange services.
Perspective to 2032
Until the end of the current concession cycle, priorities are stable: six operators, 10 years, a high tax on GGR, diversification through non-gaming, relying on the mass segment and tight control of promoters. Risk factors - dependencies on the inbound flow of mainland China and regional competition, but the institutional model looks predictable.
Terms
DICJ - Macau Casino Regulator (Gaming Inspection and Coordination Bureau).
Concession - the right to operate a casino under an agreement with the Macau government for a certain period, with a set of obligations and KPIs.
Gaming promoter (junket) - licensed promoter of games in the new mode; deposit services are prohibited, liability is expanded.