Macau Strengthens Its Casino Rules to Prevent Illicit Cash Flows
With the decision to ramp up the supervision, the world’s largest casino hub of Macau will restructure its casino regulator by doubling its gaming inspectors from 192 to 459 by forming a new director-level position. As per the statement given by the council on the government’s website, these regulations will be in action once it is issued in the city’s official tabloid, which may take some weeks.
These amendments have come into light right before the expiration of the license of the multi-billion dollars casino that will make it mandatory for operators MGM China (2282.HK), Sands China (1928.HK), SJM Holdings (0880.HK), Wynn Macau (1128.HK), Melco Resorts and Galaxy Entertainment (0027.HK) to bid for new concessions in gaming.
In the last few years, Macau, a Special Administrative Region of China, has hardened its observations on casinos to prevent illegal cash flows and cash lending from China. Even Beijing has taken strict actions on cross-border cash flows for gambling by disturbing Macau’s monetary channels, celebrated operators, and elite casinos.
Like many other countries, Macau was affected by covid-19 restrictions since the beginning of 2020; with a lack of travelers, the revenue generated by gambling has plunged a lot and is even less than half compared to the 2019 numbers.
Lately, in many countries, it has been observed that casinos, betting, wagering, and gambling are gaining popularity. Many of them decided to legalize the same to increase revenue and come out of the economic crunch caused by the pandemic. But, for all this, Macau has to loosen up. For now, it seems like the casino lovers of Macau have to deal with the situation as with more inspectors, the working mechanism will get majorly disturbed.