Australia-based slot machine manufacturer Aristocrat Leisure Ltd. is changing things up at its operations in Macau. It has formed a new limited liability company (LLC) that will be in charge of all the company’s business in the city. The new business was created in order to comply with a proposed directive by the Macau government that seeks to have all gaming equipment manufacturers operate through an LLC, instead of as a division of a foreign-owned company.
According to the Macau News Agency, the new LLC has been dubbed Aristocrat Technologies Macau, Ltd. According to a statement from Aristocrat, the city’s proposal has not yet been implemented, but carried an effective date of January 1, 2019.
The company added,
“To ensure compliance with these requirements and to allow sufficient time to manage all the aspects associated with transferring our business to a local limited liability company, Aristocrat has established a locally registered company, Aristocrat Technologies Macau Ltd. (ATM).”
ATM is reportedly already licensed by Macau’s Gaming Inspection and Coordination Bureau, the DICJ. The company will maintain all of the operations that have, until now, been managed by Aristocrat (Macau) Pty Ltd. It is 100% owned by Aristocrat and the officers, directors and managers have remained unchanged with the formation of the new company. Aristocrat (Macau) Pty. Ltd.’s license with the DICJ is set to expire this Sunday and ATM will officially launch as of April 1.
The DICJ reportedly approved the local business on January 10, 2019, and ATM has an operating license that will continue until March 31, 2020, “provided the accreditation is not earlier suspended or revoked.”
The managing director for Aristocrat Leisure Asia-Pacific, Chris Rowe, adds in the statement,
“Please be assured that we are working to ensure the transfer to the new entity occurs without inconvenience and with no disruption to our usual business processes.”
The LLC requirement has allegedly been in place for the past several years, but has not been strictly enforced. According to World Finance,
“[G]aming machine suppliers have to require DICJ administrative authorisation to operate in the Macau gaming industry… They must perform their commercial activity through an affiliate or a limited liability company by shares (sociedade anónima, according to Macau Law). Its share capital must be wholly represented by nominative shares and such company’s activity (as reflected in the respective articles of association) may only consist in ‘producing, supplying, assembling, installing, programming, repairing, adapting, modifying, technically assisting and maintaining gambling machines.’”