A fiscal policy adviser to the Chinese government predicts “stable development” for Macau’s gambling industry, although Beijing is preparing a legislative amendment aimed at halting capital flight to casinos abroad.
“The formula ‘one country, two systems’ is not going to change easily. The gambling industry in Macau will certainly have relatively stable development prospects,” said Jia Kang to the Lusa news agency.
The former head of the Chinese Academy of Fiscal Sciences, an influential think tank under the Ministry of Finance of China, admitted that China loses at least one trillion yuan annually, or one per cent of the country’s GDP, to casinos abroad.
Last month, the Chinese Ministry of Public Security even admitted that this capital flight exacerbates the risks of a financial crisis and referred to “growing difficulties” in waging illegal gambling operations due to online gambling and the use of digital currencies when transferring funds, making it difficult to trace the source.
Source: Asia Gaming Brief