Australian slot machine maker Aristocrat Leisure Ltd has now created a new limited liability company to take care of its operations in Macau, the global gambling hub.
The move to create a new company comes after the Macau authorities directed that all gaming equipment manufacturers run their business in Macau through an LLC. Offshore division of foreign-owned entities is not allowed to do gambling and gaming equipment business in Macau.
To continue with its operation in Macau, the company has created Aristocrat Technologies Macau, Ltd. to comply with the new regulations. In a statement to the press about the latest move the company said that “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).”
The new entity is entirely owned and managed by Aristocrat, and the principal officials also remain unchanged. The company will continue with the operations it had been involved in Macau so far.
The license of Aristocrat (Macau) Pty Ltd.’s which is authorized by the DICJ to run business in Macau will expire on the 30th of March.
Chris Rowe, the managing director for Aristocrat Leisure Asia-Pacific, said, “Please be assured that we are working to ensure the transfer to the new entity occurs without the inconvenience and with no disruption to our usual business processes.”
While the LLC requirement had been there, it was not being followed strictly. World Finance, in a report, said that “[G]aming machine suppliers have to require DICJ administrative authorization 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.’”