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China’s Casino Crackdown is Part of Quest to Transform Macau

china casino crackdownMany investors were surprised about China’s casino crackdown in Macau. As a result, many foreign investors sold off their casino shares. Also, Beijing’s latest move was part of the quest to transform Macau.

The Chinese government has been trying to control the gambling industry that led to the growth of Macau’s economy. At present, its value is around $24 billion. However, the government didn’t like how casinos became a way for China’s elite to spend their money.

The government tried several ways to curb casino spending. For example, they installed facia-recognition technology in ATMs, limited cash withdrawals, and considered using digital currency. Also, the government is planning to dilute Macau’s dependence on gambling.

China’s Casino Crackdown

In 2019, China released a plan for the Greater Bay Area that included Macau, Hong Kong, and parts of southern China. The goal was to transform Macau into a global tourism and leisure hub. Thus, gamblers’ preferred casinos would turn into traditional Chinese medicine parks, convention centers, and sports stadiums.

The government wants to have more non-gaming facilities in Macau. After announcing new casino regulations, it seems like there’s no turning back for China regarding Macau casinos. Also, the proposed rules are currently undergoing public consultation.

China plans to integrate Macau with the mainland. Beijing is encouraging city officials to develop non-gaming industries. It wants to focus on cultural tourism, high-tech manufacturing, Chinese medicine, sports, and conventions. Also, gambling is out of the picture. Operators should consider to open a casino with a pay per head instead of investing in Macau.

According to recent reports, the six casinos in Macau dropped 26 percent since the release of the proposed rules. The good news is that the market recovered around 1.7 percent. However, it would be worse if China approved the new rules. When that happens, gamblers could play online casino games instead of going to Macau.

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