Macau’s Whales Unaffected by Money Exchange Crackdown

Macau, known for its thriving casino industry, has recently been in the spotlight regarding its high rollers and the crackdown on illegal money exchange services in China. Despite the government’s efforts to regulate the flow of funds into casinos, Citibank’s analysis suggests that Macau’s premium mass segment remains unaffected.

According to research analysts George Choi and Ryan Cheung, Macau has experienced an increase in both year-on-year and month-on-month betting in the premium mass market. The total betting in this segment saw a 35% year-on-year increase to HK$12.8m (US$1.6m) for August, involving 655 high rollers. This growth indicates that most players are still able to access legitimate channels to transfer their funds to Macau casinos, even after the government’s crackdown on illegal money exchanges within casino premises.

The analysts also noted that August is traditionally a strong month for visitation and gaming revenue in Macau, with a 40% year-on-year increase in player count. This surge in casual premium mass players returning to the casinos suggests a positive trend in the market.

Moving money through Macau casinos via money exchange services has long been a popular method for individuals to circumvent China’s strict capital controls and move large sums of cash out of the country. However, in response to this practice, the Chinese government announced a crackdown in June, imposing penalties of up to five years’ imprisonment for unauthorized currency exchanges within casinos.

Despite initial concerns that the crackdown would hinder high rollers’ ability to access funds for gambling, Choi and Cheung of Citibank reassured investors that these fears were likely exaggerated. They pointed out that whales still had legitimate channels to transfer funds to Macau, and the reports of thousands of individuals detained for unauthorized exchanges did not necessarily indicate a significant impact on premium mass players.

Furthermore, the slight dip in casino activity observed in July was attributed to a seasonal trough rather than a direct result of the crackdown on money exchange services. The analysts emphasized that premium mass players were unlikely to rely solely on illegal money exchanges as their primary method of currency conversion.

Overall, Citibank’s analysis paints a positive picture of Macau’s ability to adapt to regulatory changes and maintain its appeal to high rollers in the premium mass segment. Despite challenges posed by the crackdown on money exchange services, the casino industry in Macau continues to thrive, with players finding ways to navigate the regulatory landscape and access funds through legitimate channels.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top