Anti-corruption drive not only reason for decline in Macao’s gambling: NPC deputy

By Hu Weijia Source:Global Times Published: 2016-3-11 1:13:02

The Chinese mainland's anti-corruption campaign is not the only reason for the slowdown in Macao's gambling industry, a deputy to the national legislature from Macao told the Global Times Tuesday during the two sessions.

Lao Ngai Leong, president of the Association of Returned Overseas Chinese Macao and a member of the National People's Congress, said that one reason for the downturn in Macao's gambling business is the downward pressure on China's and the world's economy.

Macao has became the world's largest gambling center in 2006 and one of the world's richest cities with the highest GDP per capita by purchasing power parity as of 2013, according to the World Bank.

Gross gaming revenue in June 2015 dropped by 36.2 percent to 17.4 billion patacas ($2.93 billion), the 13th straight month of declines, according to data released by Macao's Gaming Inspection and Coordination Bureau.

China UnionPay has tightened regulations against money laundering, as China has strengthened its crackdown on corruption and prevented gambling with public funds, said Lao.

Besides, visitors to Macao can only enter with an exit-entry permit to Hong Kong and Macao, Lao added.

Chui Sai On, the chief executive of Macao, said he expects revenue from gaming to drop to 200 billion patacas ($25 billion) in 2016, the Financial Times reported in November 2015.

Echoing Lao, Kou Hoi In, a member of Macao's Legislative Assembly, told the Global Times on Thursday that when the global economy performs poorly, Macao is also affected but that its economy remains stable.

"Gambling is and always will be the engine that runs Macao," Kou said.

 "Although gambling business revenue is declining, it is not that low. It is impossible for it to continuously rise. After reaching its peak, it would slide and then stabilize, at which time diversified development should be considered," said Kou.

Appealing to the gamblers has become a priority for casinos that once relied on the wealthier gamers for most of their revenues. New casinos set to open in 2016 will include features like a miniature Eiffel Tower, intended to draw in China's burgeoning middle class, Reuters reported.

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Posted in: HK/Macao/Taiwan

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