Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 percent 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 last several years, so much so that it now eclipses Las vegas, nevada as the gambling money 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 at the close in Hong Kong trading, while MGM Asia Holdings Ltd. dropped 8.2 percent for the same duration. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands China Ltd. dropped 4.6 per cent, and SJM Holdings Ltd., 6.6 %.
People to Macau from the mainland are permitted to bring only 20,000 yuan ($3,200) into the gambling hub that can only withdraw 10,000 yuan per day, per card, from cash devices. To swerve the restrictions, tourists have the ability to purchase goods from local pawn shops utilizing their debit cards and then trade them for regional money with the same pawnbroker.
Illegal Card-Swiping Amounts to $6 Billion
However, the use that is increasing of machines in casinos has maybe not only caused a slump in Macau’s pawnbroking industry, but it is additiona Continue reading Chinese Government Card Swipe Crackdown Hits Macau