Macau announced on Friday plans to reduce the duration of its new game license to just 10 years as authorities tighten regulations on the world’s largest casino hub.
The multi-billion dollar gaming industry on China’s territory has been in tension since authorities announced plans to overhaul the sector last September.
On Friday, Macau’s executive council said the game shouldn’t undermine China’s “national security,” so the city’s six casino giants have their first clarification on what the new rules will look like. I got some instructions.
Under the proposed bill, the number of game concessions remains six, but “not more than ten years,” officials said.
In exceptional circumstances, concessions “can be extended for up to 3 years.”
This proposal reduces the amount of time casino operators can hold concessions and will be updated in June.
It also plans to increase the percentage of casino companies owned locally from the current 10% to 15%, and it is almost certain that it will pass the city’s rubber stamp council.
The former Portuguese colony is the only place in China where casino gambling is permitted. Prior to the Covid-19 pandemic, there were more infections in a week than in Las Vegas in a month.
For decades, the industry was dominated by casino tycoon Stanley Ho. However, in 2002 authorities opened up to five competitors, all of which were granted 20-year concessions.
Since then, the gaming sector has exploded into a $ 24 billion industry.
The business typically accounts for about 80% of government revenues and more than half of GDP, with more than 82,000 people working in the industry by the end of 2020. This is almost one-fifth of the city’s working population.
The city was also a free place for wealthy officials and businessmen as a place to bet huge amounts of money and to circumvent China’s strict rules on how much cash can be withdrawn from the country.
However, under Chinese President Xi Jinping, authorities have cracked down on money laundering and VIP junkets, and in recent years Macau authorities have been trying to diversify from the gaming sector.
At the end of last year, Alvin Chau, the boss of Sun City, the city’s largest junket operator, was detained for illegal betting abroad.
The industry was also hit by the coronavirus, which blocked almost all arrivals from mainland China, which makes up the majority of Macau gamblers.
Due to the pandemic, game revenue in 2020 plummeted to $ 7.5 billion.
It recovered slightly to $ 10.8 billion the following year, down 70% from pre-pandemic levels.
Asian gambling hub limiting new casino licenses
Source link Asian gambling hub limiting new casino licenses