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…)