Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 per cent of mass market turnover. (Image: wikipedia.org/Brenden Brain)
The result of China’s imminent crackdown on the usage 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 on the final several years, so much so that it now eclipses vegas as the gambling capital worldwide, nevertheless the Chinese government’s unexpected enforcement of a ban on illegal money transfers has investors worried; Wynn Resorts Ltd. fell recently to 8.5 percent at the close in Hong Kong trading, while MGM Asia Holdings Ltd. dropped 8.2 per cent for the same duration. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands Asia Ltd. dropped 4.6 %, 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 may only withdraw 10,000 yuan per time, per card, from money machines. To swerve the restrictions, tourists are able to purchase goods from local pawn shops making use of their debit cards and then trade them for neighborhood money with the exact same pawnbroker.
Illegal Card-Swiping Amounts to $6 Billion
However, the increasing usage of card-swiping machines in casinos has perhaps not only caused a slump in Macau’s pawnbroking industry Continue reading “Chinese Government Card Swipe Crackdown Hits Macau”