Macau, renowned as a global gaming destination, is not only characterised by its bustling casinos and luxury resorts but also faces an escalating public health issue: problem gambling. In the first half of 2024, record numbers of problem gamblers were documented, marking a critical moment for the region. In response, Macau’s Legislative Assembly approved a comprehensive law targeting illegal gambling, signalling a government push to curb unregulated gambling activities and mitigate gambling’s social impact.

Problem gamblers in Macau reach record high

While problem gambling has long been a concern in Macau, data from early 2024 underscored the urgency of addressing it. Research points to a rise in problem gamblers, correlating with recent global studies from The Public Health Commission that highlight gambling addiction’s severe impacts, comparing it to issues associated with tobacco and alcohol use. Problem gambling often strains family structures, destabilises finances, and impacts mental health. Many affected individuals fall into a “chasing losses” cycle, where they gamble compulsively in a bid to recoup their losses, a behaviour linked to debt, mental health crises, and, at times, criminal activity to sustain the habit.

Scope of the new law on illicit gambling

The new legislation, one of Macau’s strictest in recent years, directly targets unregulated activities, including side betting, parallel betting, and unauthorised currency exchanges linked to gambling. Legislators in Macau have pointed out that side betting and similar activities enable unmonitored, potentially exploitative gambling practices that evade tax and bypass responsible gaming requirements. This law aims to close those loopholes by enforcing penalties of up to eight years for side betting operations and five years for those conducting illegal money exchanges. For further deterrence, individuals engaged in unlicensed money exchanges within casino properties face a ban on casino entry, lasting between two and ten years.

The new law, which comes into force on Tuesday, October 29, also prohibits the operation or promotion of unauthorised online gambling. With these measures, legislators have aimed to create a consistent approach to handling illegal gambling, extending regulatory oversight both within licensed establishments and beyond their boundaries. The move aims to direct gamblers towards regulated venues, where responsible gaming practices and oversight mechanisms are in place, differentiating legitimate businesses from potentially harmful, unregulated environments.

Legislative challenges and community concerns

The development of this law was not without debate. Legislators raised concerns about how some traditional activities, like Mahjong and Xiangqi (Chinese chess), could be impacted by stricter interpretations of illegal gambling provisions. There was also a particular focus on how the law would apply to local lotteries, such as the Hong Kong-based Mark Six, which has long been popular in Macau despite its unofficial status. According to an article in Macau Daily Times, lawmaker Ron Lam questioned the inclusion of provisions targeting lottery exploitation, noting that the sale of foreign lotteries in Macau could lead to legal ambiguities.

Secretary for Administration and Justice André Cheong addressed these concerns by clarifying that the law is designed to target commercial exploitation rather than informal transactions, though doubts about enforcement specifics remain among some legislators. These unresolved questions reflect the broader challenge Macau faces in balancing comprehensive anti-gambling legislation with considerations of traditional practices and international influences on gambling activities.

The path forward for responsible gaming

While this new law represents a significant step toward limiting the reach of illegal gambling in Macau, experts suggest that tackling problem gambling requires a multi-dimensional approach. Authorities and public health advocates recommend combining legal restrictions with community-wide support systems and educational initiatives to help prevent gambling addiction. For casinos, this could entail expanded responsible gaming tools, such as self-exclusion programs, spending limits, and targeted counselling services to assist at-risk individuals. Macau’s approach to gambling regulation now increasingly resembles that of other major jurisdictions, such as the UK and Australia, which enforce strong ties between gambling operations and public health initiatives. As Macau rolls out this law, its effectiveness will likely serve as a benchmark for other Asian regions with burgeoning gambling industries. This model could provide a roadmap for balancing economic growth with public welfare, a pressing need in densely populated and economically diverse areas like Macau. Macau’s new law against illicit gambling is a milestone in the region’s ongoing efforts to mitigate the social impact of problem and unlawful gambling. By targeting illegal gambling activities and enforcing strict penalties, Macau is setting a precedent that may shape responsible gaming practices across Asia. As the law’s impact unfolds, it holds the potential to redefine Macau’s gaming landscape, underscoring the region’s commitment to balancing industry growth with social responsibility.

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