Chinese Government Card Swipe Crackdown Hits Macau

Chinese Government Card Swipe Crackdown Hits Macau

Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 % of mass market turnover. (Image: wikipedia.org/Brenden Brain)

The end result of China’s imminent crackdown on the use of hand-held card swipers is being felt in Macau, with the Wynn Macau witnessing its biggest market decline since October 2011.

Macau’s casino economy has soared over the final few years, so much so that it now eclipses Las Vegas since the gambling capital of the world, however the Chinese government’s sudden enforcement of a ban on illegal cash transfers has investors worried; Wynn Resorts Ltd. fell recently to 8.5 percent during the close in Hong Kong trading, while MGM Asia Holdings Ltd. dropped 8.2 percent for the period that is same. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands Asia Ltd. dropped 4.6 per cent, and SJM Holdings Ltd., 6.6 %.

People to Macau from the mainland are permitted to bring a maximum of 20,000 yuan ($3,200) into the gambling hub and could only withdraw 10,000 yuan per day, per card, from money devices. To swerve the restrictions, tourists are able to purchase goods from local pawn shops utilizing their debit cards then trade them for regional currency with the pawnbroker that is same.

Illegal Card-Swiping Amounts to $6 Billion

However, the use that is increasing of machines in gambling enterprises has maybe not only caused a slump in Macau’s pawnbroking industry, (more…)

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Chinese Government Card Swipe Crackdown Hits Macau

Chinese Government Card Swipe Crackdown Hits Macau

Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 percent of mass market turnover. (Image: wikipedia.org/Brenden Brain)

The result of China’s imminent crackdown on the use of hand-held card swipers is being felt in Macau, with the Wynn Macau witnessing its market decline that is biggest since October 2011.

Macau’s casino economy has soared within the last couple of years, so much so that it now eclipses Las Vegas since the gambling capital of the world, but the Chinese government’s sudden enforcement of a ban on illegal cash transfers has investors worried; Wynn Resorts Ltd. fell recently to 8.5 percent at the close in Hong Kong trading, while MGM China Holdings Ltd. dropped 8.2 percent for the same duration. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands Asia Ltd. dropped 4.6 percent, and SJM Holdings Ltd., 6.6 per cent.

People to Macau from the mainland are permitted to bring only 20,000 yuan ($3,200) into the gambling hub and may also just withdraw 10,000 yuan per day, per card, from cash devices. To swerve the restrictions, tourists are able to buy goods from local pawn shops making use of their debit cards and then trade them for regional money with the pawnbroker that is same.

Illegal Card-Swiping Amounts to $6 Billion

However, the increasing use of card-swiping machines in casinos has not only caused a slump in Macau’s pawnbroking industry, but it’s (more…)

Continue Reading