Macau’s “go-go years” appear to be over, with signs both the central Chinese government and local Macau authorities want tighter control and investors should manage their expectations accordingly.
In a stark report on Macau, Steve Vickers and Associates said that the rapid expansion of the casino industry had relied on a degree of “acquiescence regarding capital outflows and widespread, if concealed, organised crime involvement with the junkets.”
“Now the central Chinese and the local Macau governments have restricted that acquiescence and display an appetite for tighter controls,” it said.
Vickers points to the proposals put forward by the government to amend the city’s gambling laws, which include increasing the share capital held by Macau residents, which will force casinos to become more “Chinese” and patriotic in outlook.
The operators will also need approval to pay dividends outside of Macau and face greater oversight of their operations.
Source: Asia Gaming Brief