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1. Hong Kong Protest

Gambling in Macau has been legal since the 1850s when the Portuguese government legalised the activity in the autonomous colony. Since then, Macau has become known worldwide as the 'Gambling capital of the world'^[1][2] or 'Monte Carlo of the East'.

Answer 1 of 13: I would prefer to just use HKD while visiting Macau for the day, as I understand once you obtain MOP, they are non convertible back to HKD. Appreciate if anyone could advise in what situations I would even need, if any MOP's if HKD are. Just an hour away, but quite different from Hong Kong, is Macau: the mega-resort and casino center that also has interesting historical sights. It is popular to travel from Hong Kong to Macau. In this article, you will find out how to travel to Macau from Hong Kong and what to see in Macau.

Gambling tourism is Macau's biggest source of revenue, making up about 50% of the economy. Visitors are made up largely of Chinese nationals from mainland China and Hong Kong. With the entry of large foreign casinos from Las Vegas and Australia, Macau overtook the Las Vegas Strip in gambling revenues in 2007.

Until Western-style casino games were introduced in the 20th century, only Chinese games were played, the most popular being Fan-Tan. Generally, gambling in Macau can be divided into one of four categories: casino games, greyhound racing, sports betting, and lotteries. At the present time, Macau does not license online gambling operations.

Macau, a special administrative region like Hong Kong, is the only place in China where casinos are legal, and the business has grown at an astounding pace since the government ended the four-decade gambling monopoly of the Hong Kong billionaire Stanley Ho in 2001.

Macau is the pre-eminent gambling capital of the world, grossing the highest amount of gambling/gaming revenue and greatly dwarfing all the other gambling centers/cities.^[1][2][3]

• 3Gambling forms
• 4Gaming law

History[edit]

In an attempt to generate revenues for the government, gambling in Macau was legalized by the Portuguese government in 1849.^[4] In the late 19th century, the government introduced a licensing system for the fantan houses (Chinese gambling houses). It is reported that over 200 gambling houses were required to pay gambling rent to the government.^[5] The second casino monopoly concession was granted to the Tai Heng^[6] Company in 1937.^[7] The company was, however, too conservative to fully exploit the economic potential of gambling. The industry saw a major breakthrough in 1962 when the government granted the Sociedade de Turismo e Diversões de Macau (STDM), a syndicate jointly formed by Hong Kong and Macau businessmen, the monopoly rights to all forms of gambling. The STDM introduced western-style games and modernised the marine transport between Macau and Hong Kong, bringing millions of gamblers from Hong Kong every year.^[5] The license was extended in 1986 for another 15 years but expired at the end of 2001.

Macau was transferred to the People's Republic of China in 1999 and became a special administrative region of China. During this transition, there were no changes to gambling policy in Macau.^[8]

In 2002, the Macau government ended the monopoly system and 3 (later 6) casino operating concessions (and subconcessions) were granted to Sociedade de Jogos de Macau (SJM, an 80% owned subsidiary of STDM), Wynn Resorts, Las Vegas Sands, Galaxy Entertainment Group, the partnership of MGM Mirage and Pansy Ho Chiu-king, and the partnership of Melco and PBL. On 18 May 2004, the Sands Macau casino opened near the Macau Ferry Terminal. Today, there are 16 casinos operated by the STDM, and they are still crucial in the casino industry in Macau.

Economic aspects[edit]

The so-called 'Monte Carlo of the Orient', Macau's economy relies heavily on gambling. Nowadays, the gambling industry generates over 40% of the GDP of Macau. Since the early 1960s, around 50% of Macau's official revenue has been driven by gambling. The percentage remained steady until the late 1990s. In 1998, 44.5% of total government revenue was produced by the direct tax on gambling. Then there was a 9.1% decrease in 1999, probably due to internet gaming. After the handover of the Macau from Portugal to China, the SAR released gambling licenses to other companies in order to eliminate the monopoly played by the STDM. In 2002, the government signed concession contracts with two Macau gaming companies, Wynn Resort Ltd. and Galaxy Casino. This opened the gambling market for competition and increased government tax revenue significantly. It also attracted more tourists to Macau. At this moment, according to official statistics, gambling taxes form 70% of Macau's government income.^[9]

However, the gambling industry is also a source of instability in the Macau economy, as the nature of gambling business is not susceptible to technological advancement or productivity growth. The gambling business is still dependent on the prosperity of other Asian economies, especially that of China. Due to Xi Jinping's promise on cracking down of corruption across mainland China, casino profits from across Macau have been reporting a decline in monthly profits^[10] In addition, a proliferation of other gambling venues in the region is drawing the target demographic away. Macau's 2018 grew 13% over the prior year, but this lagged behind the 41% growth in emerging casino markets in Singapore, South Korea, the Philippines and Australia, according to Fitch Ratings. In 2019 casino earnings reached their lowest level in three years.^[11]

Gambling forms[edit]

Casinos[edit]

Macau has 38 casinos (as of 2016), of which the biggest is The Venetian Macao. Twenty-three casinos are located on the Macau Peninsula and ten on Taipa Island. They all operate under a government franchise and under a common set of rules.

The main casino operators in Macau are SJM Holdings, Galaxy Entertainment and Las Vegas Sands with respective revenues of 9.7, 4.8, and 4.2 billion in 2011.^[12]

A wide range of games are available, including roulette, blackjack, baccarat, boule, Sic bo, Fan Tan, keno and slot machines.

Poker was introduced only in August 2007, in an electronic table format at Galaxy Starworld casino. The first live poker tournament was the Asia Pacific Poker Tour Macau event in November 2007. Shortly thereafter, in January 2008, the government of Macau published the official rules for Texas hold 'em poker games in Macau. In February 2008, Grand Lisboa Casino added the first live-dealer cash game tables. In May 2008, 'PokerStars Macau' opened at Grand Waldo Casino. In November 2008, Texas Holdem' Poker opened at Wynn Macau. 'PokerStars Macau' moved to a new location at the Grand Lisboa Casino in March 2009. Today, Wynn Macau, StarWorld, and the Venetian offer live-dealer cash game poker tables.^[13]

Horse racing[edit]

Other than casinos, there is betting at the Macau Jockey Club and the dog-racing Canidrome.

Horse-racing mainly takes place every Tuesday and Saturday or Sunday at the race-course on the Taipa Island of Macau. The race-course has an area of 450,000 square metres and 18,000 seats for gamblers, and is open only for people over 18 years of age.

The Macau Jockey Club was formerly the Macau Trotting Club. In 1991, it was acquired by a consortium led by Stanley Ho. The Macau Jockey Club is one of the largest private employers of Macau with around 1,400 employees and around 1,100 part-timers.

Ways of betting

• On-course betting

There are over 210 betting terminals 'on-course'. All terminals can perform sell and pay functions. Punters may bet in Hong Kong dollars or Macau patacas. Bets are accepted up to the start of each race. Punters may place a bet by oral instructions or by filling a ticket.

• Off-course betting

There are over 80 betting terminals in the Off-Course Betting Centres. 14 Off-course Betting Centres are located in popular districts of Macau and Taipa.

• Internet betting

The Internet betting service commenced on 20 September 2003. Customers can review the Club's internet betting website at www.macauhorsebet.com.

• Telephone services

There are over 600 telephone service terminals and a total of over 38,000 telebet accounts. The winning dividend of account holders may at their instructions be automatically transferred to their bank accounts.

• Fast Access Terminals (FAT)

Launched in June 1997, the personal betting terminal, FAT (Fast Access Terminal) offers betting, calculation of bet units, record tracking of bets, account enquiry, withdrawal instructions and other related information on races such as declaration and race-odds. Close to 1,000 customers are currently using FAT.

• Hong Kong Service Centres

Three service centres are now set up in Hong Kong including Shaukeiwan Service Centre, Sheung Wan Service Centre and Mongkok Service Centre.

Greyhound racing[edit]

Greyhound racing takes place at the Canidrome on Avenida General Castelo Branco. These races are held on Mondays, Thursdays, Fridays and weekends starting from 7:45 pm and there are 16 games on every racing evenings. Admission is MOP$10 (usable for betting) for the public stand.

Players can bet inside the greyhound racing centre, or in off-course betting centres located in the Hotel Lisboa, Jai-Alai Palace and Kam Pek Casino.

Gambling and society[edit]

The casino industry is viewed by some as harmful to society. A high crime rate was one of the biggest problems that Macau's colonial Portuguese government had to face. Since Macau's return to China's rule in 1999, the public security situation has markedly improved. With the growth of the casino industry, a business called 'bate-ficha' was developed and it is usually run by different triad societies. The bate-ficha business is an element of triad involvement in Macau's gambling industry. Bate-ficha involves selling customers 'dead chips' that cannot be exchanged for cash in the casinos, but only by bate-ficha men or women, who are officially known as 'gaming promoters' or 'middlemen' for a commission.

Triad involvement in Macau casinos makes a serious social impact on the local area. It attracts the attention of Chinese gangsters, whose deadly battles over the fortunes to be made from racketeering and extortion in the territory are a continuing problem. As different triad societies compete for controlled territory in the casinos and on the streets, disputes between societies occur from time to time. These are often settled in violent ways. Even worse, triad societies have grown so powerful in Macau that there was a trend that people tried to seek help from these societies rather than from the police. Although the situation has improved since the 1999 handover to China, the problem is still entrenched in the local area.

Gaming law[edit]

No one under the age of 21 is allowed to gamble.

Detailed law is enforced in Macau to ensure 'qualified operation of gambling' in Macau. The details are listed in Law 16/2001 (regime jurídico da exploração de jogos de fortuna ou azar em casino), and other laws regulating the activity of gaming promoters and credit for gaming.

The Gaming Inspection and Coordination Bureau (known as DICJ) is the main government unit that oversees the operation of different gaming activities.

Under Macau law, it stated that a permit issued by the Gaming Inspection and Coordination Bureau is required for the operation of lotteries sales, lucky draw or similar activities, and the initial procedure in the application on the operation of lotteries sales, lucky draw, or similar activities is to submit a notification to the relevant government department ten days prior to the application.

In the Macau legal system, gaming law is not considered as a branch of law in the traditional sense. Instead, it may be considered as a transversal gathering of a range of legal topics more or less directly related to gaming, including constitutional law, administrative law, tax law, company law, contract law, and criminal law. In this manner, issues of public law as well as private law are of relevance for gaming.

Tax law issues[edit]

The taxation of casino sub/concessionaires is made of a fixed part and a variable part. The variable part falls on the gross gaming revenue. The tax rate is currently of 35%, plus two contributions of up to 2% and 3% for social and economic purposes. The maximum tax is therefore 40%. In addition, a fixed premium is also payable, plus a premium per VIP table, other table, and slot machine. Gaming promoters pay taxes on commissions received.

Contract law issues[edit]

From the perspective of contract law, gaming and betting are contracts which may or may not generate civil or natural obligations for the parties. The matter is regulated in the Civil Code 1999 (art. 1171), which states, drawing from Roman law, that gaming and betting generate natural obligations except in sports competitions and where the law provides otherwise. The problem is that gaming legislation currently does not provide to this effect.

Regarding credit for gaming, Macau law states since 2004 that the granting of credit for casino games of fortune generates civil obligations, which are fully enforceable in Macau courts. Credit for casino games of fortune is defined as any case where chips are passed on to a player without immediate cash payment of such chips; this is an intentionally broad concept. Credit for gaming is regulated by Law no. 5/2004, of 14 June.

Criminal law issues[edit]

From the perspective of criminal law, there are specific criminal offences related to gaming; see Law 8/96/M, of 22 July, and Law 9/96/M, of 22 July. Other criminal law matters are covered by broader laws: the Penal Code and the law on Organized crime. Game cheating is mentioned in art. 6 of Law 8/96/M, of 22 July. In addition, general laws on the prevention and repression of money laundering and the financing of terrorism through casinos apply.

Problem gambling[edit]

As of November 2011, exclusion of players from gambling establishments is voluntary. If the person realises that their gambling activities begin to cause trouble, they can turn to the Gaming Inspection and Coordination Bureau to ban them from entering the casino. The government of Macau is seeking the opinions of the citizens on the possibility of establishing a programme that will allow excluding problem gamblers from all casinos without their consent. The Legislative Assembly is currently^[when?] analyzing the new draft law, which also deals with the problem of exclusion from gambling houses. The law suggests that the person can be excluded from the casino if they submit their own request or approve the request submitted by their relatives.^[15]

Other matters[edit]

Competition law matters, and advertising law, as well as the impact of WTO law on gaming, may also be pointed out as part of gaming law. Regarding online gaming, the Macau SAR does not currently grant concessions for online casinos. The current casino concessions only cover land-based gaming, not online gaming.

Academic research and teaching[edit]

The teaching of Macau gaming law started in 2005 the Faculty of Business Administration of the University of Macau, in the undergraduate program of gaming management.Since 2007 it is also included in the master program of international business law offered by the Faculty of Law of the University of Macau [1], in which various theses have already been defended in topics of gaming law.

See also[edit]

References[edit]

1. ^ ^abBranigan, Tania (11 May 2011). 'Macau – gaming capital of the world'. The Guardian.
2. ^ ^ab'Macau: The world's gambling capital'. BBC News.
3. ^Riley, Charles (6 January 2014). 'Macau's gambling industry is now 7 times bigger than Vegas'. CNNMoney.
4. ^Godinho, Jorge (2012) 'A history of games of chance in Macau, Part 1 : Introduction', in Gaming Law Review and Economics, Vol. 16, no. 10, p. 552-556, and (2013) 'Part 2 : The foundation of the Macau gaming industry », Gaming Law Review and Economics, Vol. 17, no. 2, p. 107-116.
5. ^ ^abChan, S. S. (2000). The Macau Economy. Macau: Publications Centre, University of Macau. ISBN99937-26-03-6.
6. ^'Macau Gaming Summary'. UNLV Center for Gaming Research. Retrieved 19 April 2012.
7. ^Macau Yearbook 2007. Government Information Bureau of the Macau SAR. 2007. ISBN978-99937-56-09-5.
8. ^'All you need to know, Macau Hotel'. Gambling Info. Retrieved 27 June 2011.
9. ^Bloomberg, Macau Casinos Top Las Vegas as Adelson, Wynn, Battle Stanley Ho, 1 March 2007
10. ^'Macau Gambling decline'. Yahoo Finance. Retrieved 21 December 2015.
11. ^Ese Erheriene (7 May 2019). 'Casino Boom in Asia Pressures Vegas Operators: Regions new venues aim to draw gamblers beyond Macau, U.S. giants' longtime hub'. Wall Street Journal. p. B5.
12. ^'Main casino operators in Macau'. Travel & Gamble Online Magazine. Archived from the original on 24 June 2017.
13. ^'Best Poker Rooms in Macau – Macau Poker Updated Jan 2014'.
14. ^video on www.oceanus.asiaArchived 1 February 2011 at the Wayback Machine
15. ^Macau Daily Times: Gov't considers ban on problem gamblers

Further reading[edit]

• Jorge Godinho, 'Casino Gaming in Macau: Evolution, Regulation and Challenges', in UNLV Gaming Law Journal, vol. 5(1), 2014, pp. 1 ff. [2]
• Jorge Godinho, 'A History of Games of Chance in Macau: Part 1 – Introduction’, in Gaming Law Review and Economics, vol. 16(10), October 2012, pp. 552 ff. [3]
• Jorge Godinho, Macau Business Law and Legal System, LexisNexis, Hong Kong, 2007 (ISBN9789628937271) [4]
• Governo de Macau, O Jogo em Macau, 1985.
• Angela Leong, 'The 'bate-ficha' business and triads in Macau casinos', QUEENSLAND U. OF TECH. L. & JUST., 84 (2002)
• Metaxas Theodore and Folinas Sotiris (2016) 'Gambling Tourism and Economic Development: Some lessons from Macao,' MPRA Paper 72397, University Library of Munich, Germany.

External links[edit]

• Media related to Gambling in Macau at Wikimedia Commons

The Cohong, sometimes spelled kehang or gonghang, was a guild of Chinese merchants or hongs who operated the import-export monopoly in Canton (now Guangzhou) during the Qing dynasty (1644–1911). During the century prior to the First Opium War of 1839, trade relations between China and Europe were exclusively conducted via the Cohong, which was formalised by imperial edict in 1760 by the Qianlong Emperor. The Chinese merchants who made up the Cohong were referred to as hangshang (行商) and their foreign counterparts as yanghang (t, literally 'foreign traders').^[1]

Foundation and structure[edit]

In 1704, the Baoshang system was established. This system granted a number of Chinese merchants license to trade with Western merchants as long as they helped to collect duties from the Westerners, successfully aligning trading interests with the government's revenue collection. This was the predecessor for the later Cohong system.^[2]

According to John Phipps, author of the 19th century Practical Treatise on the China and Eastern Trade, the merchant Poankeequa (潘启官)^[3]:85 founded the guild in the 1790s, although Chinese historian Immanuel C.Y. Hsu cites an earlier date of 1720.^[4]

Over time, membership of the Cohong fluctuated between five and 26 merchants^[7] authorized by the Chinese Central Government to handle trade, particularly rights to trade tea and silk, with the West.^[1] They were the only group at the time authorized to do this, making them the main controllers of all foreign trade in the nation.

Trade with the West[edit]

Hong Kong Protest

see: Canton System

Within the city of Canton (Guangzhou, 广州）the Cohong were granted the Qing Empire's monopoly on foreign trade, overseeing the trade between western silver from the New World and valued goods from the Qing Empire^[8]Cohong merchant guilds therefore represented the primary link between the government of the Qing Dynasty and the rest of the world.^[8] As Guangzhou represented the only official port of trade between the Qing trade network and European trading powers, the Cohong enjoyed a virtual monopoly over the trade with the west, and as such reaped the benefits of the Westerners' insatiable appetite for porcelain, silk, and most of all, tea. Under the oversight of a ministry of revenue official known to the British as the 'Hoppo' (a mispronunciation of the term hubu, 户部), the Cohong, from their offices known as hangs, held a monopoly over trade with the Western trade warehouses and the incredibly important silver they represented for the Qing economy.^[9][10]

Despite controlling the trade between European powers and the Qing Empire, the Cohong often held precarious positions, with the Hoppo holding tremendous power over their appointment and their finances.^[8] Additionally, because of the low social status of merchants within traditional Confucian social hierarchy, the Cohong merchants were often at the mercy of their bureaucratic masters within the Hoppo.^[11] Throughout his three year term in the office, a Cohong merchant would be forced to pay numerous bribes, levies, donations, and gifts to his superiors, resulting in a steep drop in profits.

Nevertheless, as a result of the lucrative trade they controlled, Cohong guilds became very wealthy, with their personal fortunes numbering among the highest in the Qing dynasty, and even in the world. To maintain their influence they ensured that local residents and officials up to the highest level of the bureaucracy made overtures to the Qing government to maintain Canton's status as the sole site of official trade with the western world.^[11] From time to time, this municipal trade monopoly came to rankle the British government, who sought out other ports of call through which to obtain the goods that their Empire craved.

Consoo fund[edit]

The Cohong further functioned as controller of the Consoo Fund (公所, gōngsuǒ)(actually the name of the office of the Cohong in Thirteen Factory Street), a system established in 1781 that utilized a pool of money raised by levies (公所费, gōngsuǒfèi) on the trades of individual merchants to cover the debts of any bankrupt hong at year end and to pay the various exactions demanded by the government and the Hoppo bureaucrats. Officially, the rate levied for the fund was 3% of the value of goods. This tax originally applied only to tea but by the late eighteenth century had expanded to cover 69 different products.^[12][13]

Opium trade[edit]

Due to the heavy need for silver in the trade between European colonial powers and the Qing in Canton and complications with its silver supply due to revolts within the American Colonies, the British Empire required a substitute for the precious metal. In short order, the British employed opium as a valuable trade good to obtain the goods it desired. As the Qing Empire's trade with the West transitioned from Silver to Opium, the Cohong Guilds transitioned themselves to the trade in the addictive narcotic substance. Opium from the British Empire's Indian colonies moved swiftly into the Chinese markets, largely overtaking silver as the most traded good between the English and the Qing dynasty. Despite the Daoguang Emperor's many opium prohibition edicts throughout the early Nineteenth Century, the western trade upon which the Cohong Merchantmen built their livelihoods now centered around the drug, and as such the merchants participated heavily in the narcotic trade.^[11] Within the city of Canton, in which western trade represented the center of the economic structure, the Qing Emperor's edicts held little effect over the trade hierarchy .

From Lintin Island, the small island near Guangzhou on which the European states moored their boats, the Cohong merchants facilitated the use of small smuggling vessels known as 'fast crabs' or 'shifting dragons' in order to transport the illicit substance from Lintin to the warehouses within Canton.^[8] These boats were necessary to avoid Qing search and seizure of the opium and ensure its arrival in Canton, after which the Cohong took over the process, trading their goods for the opium and preparing it to enter Qing Territory. While the Cohong did not participate directly in the opium trade within China (this was accomplished through other merchants, and the distribution handled by criminals and social outcasts, such as migrants), they were the first part of the process through which the substance entered China.^[14]

The end of the Cohong[edit]

After the British victory in the First Opium War, the Treaty of Nanjing, signed in 1842, extracted several British demands from the Qing government, in particular the end of the Canton system and the dissolution of the Cohong merchants' guilds. In the wake of this decision, trade moved from the Confucian merchant-to-merchant systems of the Qing Empire to the more diplomatic official-to-official trading systems of the British Empire.^[10]

See also[edit]

• Germania (guild) - Merchants' guilds in Valencia, Spain
• Guild of Romanists Club in 17th century Antwerp
• Hanseatic League -Merchants' guilds in Europe, especially the Baltic region
• Jāti -guilds (of mediaeval origin) in India
• Shreni - Association of merchants, traders and artisans in India
• Za (guilds) - Merchants' guilds in Japan

References[edit]

1. ^ ^ab'Entry on Cohong in the Encyclopædia Britannica'. Encyclopædia Britannica. Retrieved January 31, 2014.
2. ^Ronald C. Po (2018). The Blue Frontier: Maritime Vision and Power in the Qing Empire. Cambridge University Press. p. 152. ISBN978-1108424615.
3. ^Van Dyke, Paul A; Maria Kar-wing, Mok (November 2015). Images of the Canton Factories 1760–1822: Reading History in Art. Hong Kong: Hong Kong University Press. ISBN9789888208555.
4. ^Hsu, Immanuel C.Y. (2001). The Rise of Modern China (中國近代史) (in Chinese). The Chinese University Press (中文大學出版社). p. 149.
5. ^Liang Jiabin (梁嘉彬) (1999). Survey of the Thirteen Factories (廣東十三行考) (in Chinese). Guangdong People's Publishing (广东人民出版社).
6. ^Morse, Hosea Ballou (1926). The Chronicles of the East India Company Trading to China 1635-1834. The Chronicles of the East India Company. 1. Harvard University Press.
7. ^Liao, Hsien-chuan. 'The Canton Hong System and Commercial Development in Ching Dynasty: a Study (論清代行商制度與貿易發展的關係)'(PDF) (in Chinese). Taiwan, Taipei: Chinese Culture University. Archived from the original(PDF) on 2014-02-19. Retrieved 2014-01-31.
8. ^ ^abcdJonathan, Porter (2016). Imperial China, 1350-1900. Lanham. ISBN9781442222922. OCLC920818520.
9. ^Farris, Jonathan A. (Fall 2007). 'Thirteen Factories of Canton: An Architecture of Sino-Western Collaboration and Confrontation'. Buildings & Landscapes: Journal of the Vernacular Architecture Forum. 14: 66–83. doi:10.1353/bdl.2007.0000. JSTOR20355396.
10. ^ ^abJonathan, Porter (2016). Imperial China, 1350-1900. Lanham. ISBN9781442222922. OCLC920818520.
11. ^ ^abcT., Rowe, William (2009). China's last empire : the great Qing. Cambridge, Mass.: Belknap Press of Harvard University Press. ISBN9780674036123. OCLC648759723.
12. ^Phipps, John (1836). A Practical Treatise on the China and Eastern Trade. London: Wm. H. Allen. p. 151.
13. ^Van Dyke, Paul A. (2011). Merchants of Canton and Macao: Politics and Strategies in Eighteenth-Century Chinese Trade. Hong Kong University Press. p. 29. ISBN9789888028917.
14. ^Macauley, Melissa (2009-06-20). 'Small Time Crooks: Opium, Migrants, and the War on Drugs in China, 1819–1860'. Late Imperial China. 30 (1): 1–47. doi:10.1353/late.0.0021. ISSN1086-3257.