The main operators in the Chinese territory, which depends on the gaming industry, lose up to 15,600 million euros due to the fear of greater interventionism in the sector. While the local casino sector is in the spotlight, it’s still safe to play on top online casino providers if you register with the best betting service, ACC-EX.
Then considered the Vegas of Asia, Macau became a magnet for casino fans in 2012. That changed abruptly when Chinese President Xi Jinping’s administration began implementing measures to combat corruption. He did this through a campaign that, for some, put a stop to the irregularities detected in the sector; for others, involved excessive restrictions.
Recovery took years. Now, the announcement of new regulations by the Macanese authorities led to a violent collapse last month. A big crash in the market value of the major casino operators. Until the month of September, the casinos had left up to 15.6 billion euros on the stock market.
The Macao Gaming Inspection and Coordination Directorate is currently running 45-day period of public consultations for an amendment to the law that regulates gambling in the territory. The region’s Secretary of Economy and Finance, Lei Wai Nong, reported that the government intends to strengthen direct supervision of the operations of companies in this industry.
Beijing pressure on these sectors
Investor fear of increased scrutiny has resulted in huge losses for the local subsidiaries of large US casino operators Sands and Wynn. Sands China sank as much as 32.5%, while Wynn Macao collapsed almost 29%.
The scrutiny is not over; until October 29th, the government will try to debate nine points:
- The number of licenses granted;
- Terms and the appointment of representatives to supervise daily operations;
- The requirements that casino operators must meet when registering new companies;
- Employee protection measures;
- Regulations to reinforce the verification of concession companies and junket;
- The promotion of projects that are not related to gambling;
- Increased social responsibility;
- New system of administrative sanctions;
- Criminal liability.
The authorities in Macau, the only enclave in China where gambling is legal, consider that increasing the number of concessions may increase the harmfulness of gambling. However, analysts agree that this decision has been rushed as part of Beijing’s drive to further limit some large companies. Campaign that began with the technology sector and has continued with that of education and video games.
Since the anti-corruption campaign began almost a decade ago, Beijing has restricted the sector and other activities in light of the possibility that high-risk gambling could lead to illicit activities, such as money laundering.
Macau bases its economy entirely on gambling and an influx of tourists that has also been depleted by the pandemic. According to official statistics, the profits of casino operators have fallen 79% from the levels recorded before the health crisis. It seems that the Macau gambling sector is under attack from two sides. But you shouldn’t worry if you are involved in the sector of the best online casino!