LLGAL CINICN

"SC1 1nL 8ALL - MACAU kLGULA1Ck CCMLIANCL"

1o: |an I|n L|m|tada
A]c: Mr. Wayne L|o
Mr. oav Schne|der


Aprll 14, 2014
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)*+,-*./ 0+,12*3 245
-647,534*,2.


I. Lxecut|ve Summary:

1. We are lawyers quallfled Lo advlse and pracLlce ln Lhe Macau Speclal AdmlnlsLraLlve 8eglon
(Macau") and were requesLed by Clan !ln LlmlLada (C!") Lo advlse regardlng Lhe compllance
wlLh Macau gamlng and non-gamlng regulaLlons of Lhe commerclal operaLlon ln Macau of a
game known as SpoL Lhe 8all". 1hls legal oplnlon ls addressed Lo, and ls solely for Lhe beneflL
of, C! and lLs dlrecLors.

2. C! ls hereby auLhorlzed Lo exhlblL Lhls legal oplnlon Lo Lhlrd parLles ln Lhe conLexL of Lhe
negoLlaLlon and execuLlon of any commerclal agreemenLs ln respecL of, or relaLed Lo, Lhe
operaLlons of Lhe SpoL Lhe 8all" ln Macau. 1he Lhlrd parLles Lo whom Lhls legal oplnlon ls
exhlblLed are noL Lhe addressees of Lhls legal oplnlon and may noL make use of Lhls legal
oplnlon wlLhouL prlor auLhorlzaLlon.

1he followlng ls Lhe facLual background on whlch Lhls oplnlon ls based:



3. SpoL Lhe 8all" ls a game - whlch became popular ln Lhe unlLed klngdom as a newspaper game
ln Lhe 1970s and 1980s - where Lhe player has Lo guess Lhe poslLlon of a ball whlch has been
removed from a phoLograph of a ball sporL, especlally fooLball. 1he poslLlon of Lhe ball musL be
deduced from Lhe relaLlve poslLlons of Lhe sporLsmen shown ln Lhe phoLograph, Lhe dlrecLlons
ln whlch Lhey are looklng and oLher Lechnlcal elemenLs of Lhe sporL belng played.

4. C! lnLends Lo commerclally operaLe a modern verslon of SpoL Lhe 8all ln Macau by whlch
compeLlLlons may be enLered aL cerLaln physlcal slLes Lhrough Lhe purchase of compeLlLlon
enLrles from a member of sLaff aL a sLand operaLed by C!,

3. uslng all Lhe lnformaLlon shown ln a sporLlng phoLograph dlsplayed ln a compuLer screen
locaLed aL Lhe sLand (from whlch Lhe orlglnal ball has been permanenLly erased), Lhe
compeLlLors wlll use Lhelr sklll and [udgmenL Lo correcLly ldenLlfy Lhe grld square wlLhln whlch
Lhey conslder ls Lhe mosL llkely poslLlon of Lhe cenLer of Lhe ball. 1he compuLer wlll reglsLer Lhe
selecLed spoL and, upon provldlng Lhe operaLor on Lhe sLand wlLh conLacL deLalls, Lhe
compeLlLor wlll be glven a recelpL wlLh personal deLalls and compeLlLlon enLrles. CompeLlLlon
for Lhe same phoLograph wlll Lake place aL dlfferenL locaLlons (lncludlng locaLlons ouLslde of
Macau) and wlll close slmulLaneously on a speclflc daLe,

6. 8efore Lhe compeLlLlon sLarLs, Lhe poslLlon of Lhe ball wlll be deLermlned and lmmedlaLely
encrypLed and sLored securely on a daLabase. 1he wlnner wlll be Lhe person - amongsL Lhe
compeLlLors who have played ln all locaLlons where Lhe compeLlLlon ls belng held - who
correcLly ldenLlfles, or lf no one ls correcL, who ls closesL Lo, Lhe grld square wlLhln whlch Lhe
cenLer of Lhe ball ls locaLed or deemed Lo be locaLed by a panel of experL [udges, 1he wlnner of
a compeLlLlon wlll be awarded a prlze ln specles (normally a car or a luxury waLch) whlch wlll
be dellvered aL lLs address (Lhe SpoL Lhe 8all Macau CompeLlLlon").

1he followlng are assumpLlons on whlch Lhls Legal Cplnlon ls based:

a) 1he Lerms and condlLlons of Lhe SpoL Lhe 8all Macau CompeLlLlon wlll be slmllar ln
subsLance Lo Lhe Lerms and condlLlons avallable, on Lhe daLe of Lhls legal oplnlon, aL Lhls
llnk: 899:;<<===>?@9?>A@%<*$B%C>&C:D - wlLh Lhe followlng maLerlal dlfferences:



(l) Lhe SpoL Lhe 8all Macau CompeLlLlon wlll noL be enLered onllne from Lhe physlcal
slLes made avallable by C! ln Macau, raLher lL wlll be played Lhrough a
smarLphone/LableL appllcaLlon made avallable on Lhe spoL, neverLheless, by enLerlng
Lhe SpoL Lhe 8all Macau CompeLlLlon Lhe players wlll be [olnlng a compeLlLlon held
onllne and open Lo players based ln locaLlons oLher Lhan Macau whlch are sub[ecL Lo
Lhe same Lerms and condlLlons,

(ll) Lhe locaLlon of Lhe ball agalnsL whlch Lhe compeLlLors enLrles wlll be compuLed wlll
be made elLher by uslng Lhe maLhemaLlcally calculaLed real coordlnaLes of Lhe cenLer
of Lhe ball (Lhe 8eal LocaLlon MeLhod") or Lhe locaLlon of Lhe cenLer of Lhe ball as
esLlmaLed Lo be by a panel of experL [udges (Lhe anel of !udges MeLhod").

b) AlLhough played ln a compuLer screen, Lhe devlces avallable aL Lhe SpoL Lhe 8all Macau
CompeLlLlon premlses wlll noL be connecLed Lo Lhe lnLerneL or Lo any oLher means of
LelecommunlcaLlon, raLher wlll be, aL all Llmes, offllne,

c) All daLa collecLed from players wlll be sLored ln Macau only.

7. 1hls legal oplnlon wlll address Lhe followlng Loplcs:

A) CuallflcaLlon of Lhe SpoL Lhe 8all Macau CompeLlLlon under Lhe appllcable Macau gamlng
laws and regulaLlons,

8) CuallflcaLlon of Lhe SpoL Lhe 8all Macau CompeLlLlon under oLher appllcable laws and
regulaLlons and llcenslng requlremenLs,

8. 1hls legal oplnlon ls a summary oplnlon only. 1hls legal oplnlon ls almed aL reporLlng
concluslons and lL wlll nelLher llsL Lhe facLual and legal argumenLs supporLlng sald concluslons
and lL wlll noL make any rlsk assessmenL or pracLlcal advlce golng forward.




II. Lega| Cp|n|on

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'&:; &-6 7/9%'&+(,-;<

1. lL ls our oplnlon LhaL Lhe SpoL Lhe 8all Macau CompeLlLlon ln Lhe 8eal LocaLlon MeLhod ls
a game excluslvely of sklll and ln Lhe anel of !udges MeLhod ls a game predomlnanLly of
sklll. ln elLher meLhod, lL ls our oplnlon LhaL Lhe SpoL Lhe 8all Macau CompeLlLlon lnvolves
boLh an elemenL of sklll ln playlng and a degree of cerLalnLy ln lLs ouLcome LhaL wlll noL
quallfy lL as a game of chance under Macau law.

2. lor LhaL reason, lL ls also our oplnlon LhaL Lhe SpoL Lhe 8all Macau CompeLlLlon does noL
quallfy as an LlecLronlc Camlng Machlne, an lnLeracLlve Came or a LoLLery, all as deflned
ln Lhe respecLlve regulaLlons governlng sald acLlvlLles.

3. lurLhermore, lL ls our oplnlon LhaL because Lhe SpoL Lhe 8all Macau CompeLlLlon does noL
creaLe a causal relaLlon beLween Lhe ouLcome (or oLher elemenLs) of a sporLs compeLlLlon
Laklng place ln a fuLure momenL and recelvlng a prlze, lL does noL quallfy as parl-muLuel
beLLlng under Macau law.

4. 1aklng lnLo conslderaLlon Lhe above, lL ls our oplnlon LhaL Lhe developmenL and
commerclal operaLlon of Lhe SpoL Lhe 8all Macau CompeLlLlon does noL requlre Lhe prlor
holdlng of a gamlng and wagerlng concesslon or any oLher governmenL approval under
Lhe Macau Camlng Crdlnance.


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7/9%'&+(,-; &-6 '(*/-;(-9 7/=%(7/5/-+;<

3. AparL from Lhe gamlng and wagerlng operaLlons as deflned ln Lhe Macau Camlng Crdlnance
and oLher gamlng laws and regulaLlons, Lhe pursue of economlc acLlvlLles and operaLlon of


buslnesses ln Macau ls free and noL sub[ecL Lo any llcenslng or auLhorlzaLlon proceedlngs
excepL when expressly foreseen by law.

6. 1he llcenslng of cerLaln resLrlcLed economlc acLlvlLles ls seL ouL ln Lhe laws and regulaLlons
governlng a speclflc lndusLry and lL ls generally foreseen ln Lhe AdmlnlsLraLlve Llcenslng AcL
(uecree-law 47/98/M).

7. 1he AdmlnlsLraLlve Llcenslng AcL llsLs Lwo acLlvlLles sub[ecL Lo cerLaln llcenslng
proceedlngs, of whlch cerLaln elemenLs are slmllar or overlapplng wlLh elemenLs of
acLlvlLles LhaL are sub[ecL Lo llcenslng/pre-noLlce requlremenLs under Lhe AdmlnlsLraLlve
Llcenslng AcL. 1hese are: (l) arcade and vldeo game cenLers, and (ll) raffles, draws and
oLher slmllar acLlvlLles.

8. neverLheless, sald acLlvlLles are maLerlally dlfferenL from Lhe SpoL Lhe 8all Macau
CompeLlLlon ln such a way LhaL lL ls dlfflculL Lo conclude LhaL Lhe llcenslng requlremenLs
and proceedlngs of sald acLlvlLles are appllcable Lo Lhe SpoL Lhe 8all Macau CompeLlLlon.

9. lL ls Lherefore our oplnlon LhaL Lhere ls no speclflc llcenslng resLrlcLlon applylng Lo Lhe
concepL of Lhe SpoL Lhe 8all Macau CompeLlLlon.


III. ua||f|cat|ons and L|m|tat|ons

lease noLe Lhe followlng llmlLaLlons on our legal oplnlon:

We have llmlLed our legal oplnlon only Lo Lhose maLLers conLalned ln paragraph 7 of
Lhe LxecuLlve Summary, and
We express no oplnlon as Lo any laws and regulaLlons oLher Lhan Lhe Camlng
Crdlnance Lhe AdmlnlsLraLlve Llcenslng AcL whlch are ln effecL as aL Lhe daLe of Lhls
Legal Cplnlon,

lease noLe Lhe followlng quallflcaLlons on our legal oplnlon:



We have noL verlfled Lhe assumpLlons llsLed on paragraph 6 of Lhe legal oplnlon, buL,
from our revlew we are noL aware of any maLLer whlch, on lLs face, would cause our
assumpLlons Lo be lncorrecL,
CerLaln maLLers are ouLslde Lhe scope of our legal oplnlon and we do noL express an
oplnlon on Lhese maLLers ln Lhls legal oplnlon. 1he maLLers on whlch we express no
oplnlon are wheLher: (l) weLher Lhe premlses where C! lnLends Lo operaLe Lhe SpoL Lhe
8all Macau CompeLlLlon need Lo fulfll cerLaln requlremenLs or obLaln cerLaln
approvals, (ll) Lhere are legal or regulaLory llmlLaLlons Lo Lhe proposed Lerms and
condlLlons of Lhe SpoL Lhe 8all Macau CompeLlLlon and of lLs webslLe.
CourL and governmenL auLhorlLles' declslons ln Macau are noL sub[ecL Lo Lhe rule of
precedenL and Lhere may be dlssenLlng or falrly dlscreLlonary lnLerpreLaLlons of Lhe
appllcable sLaLuLes. 1herefore, Lhls legal oplnlon shall noL be read as assurance of Lhe
poslLlon LhaL a CourL or Lhe relevanL regulaLor ad[udlcaLlng on Lhese maLLers would
Lake.


?our Slncerely,

MdML Lawyers | r|vate Notary