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Macao Casinos See Revenue Surge Amid Money Changer Crackdown
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Macao casinos are booming again, nearing pre-pandemic highs. Six major operators saw a 36% jump in revenue, totaling HK$111.71 billion. Melco, SJM, and Galaxy led the charge, despite lingering losses from debt.
Yet, the good times may be short-lived. Authorities are cracking down on unlicensed money changers, key to the casino cash flow. These changers help mainland Chinese gamblers bypass strict capital controls. A recent police raid netted 47 suspects, with proposed five-year prison terms for unlicensed operations.
The crackdown reflects Beijing's fears of capital outflows amidst economic uncertainty. Ben Lee, of Macao-based IGamiX, suggests this might just be the start of a cat-and-mouse game between regulators and the casino industry.
The clampdown has already hit casino stocks, despite strong earnings. Shares of the six operators fell between 10% and 21% since June. The future of Macao's casino boom hangs in the balance, as authorities and the industry play a high-stakes game of regulation and evasion.
| Scores | Value | Explanation |
|---|---|---|
| Objectivity | 6 | Comprehensive reporting with in-depth analysis. |
| Social Impact | 4 | Strong social discussion, influencing some public opinion. |
| Credibility | 5 | Solid evidence from authoritative sources. |
| Potential | 5 | Very high potential to trigger significant changes. |
| Practicality | 4 | Highly practical, directly applicable. |
| Entertainment Value | 3 | Some entertainment value, attracts a portion of the audience. |