Macau Cracks Down on Illegal Money Exchange in Casinos

Overview:

The Macau government is taking a tougher stance on illegal money exchange in casinos, introducing a new law that could result in up to five years of jail time for unlicensed money changers.

Details:

• Illegal money changers may face imprisonment and a ban from entering any Macau casino for two to ten years.
• Players using illegal money exchange services will not be penalized.
• Chinese mainland gamblers are reportedly trying to evade capital flight restrictions by using illegal money exchanges to gamble in Macau.
• China maintains strict policies to prevent illegal money transfers to stabilize its currency.

Recent Incident:

The crackdown on illegal money exchange was reinforced after a fatal incident where a man involved in illegal money exchange was found dead in a hotel room at the Wynn Palace Casino Resort.

• The victim had worked for a money exchange gang and won around €293,500 in a casino before his death.
• Police arrested suspects linked to the illegal money exchange operation.

Market Impact:

The casino revenue in Macau dropped in June and July, leading to market unrest and a brief decline in stock prices.

• Galaxy Entertainment Group Ltd. shares fell by up to 5.7%.
• Sands China Ltd. also recorded a temporary loss of 5.2%.
• Analysts from Citigroup noted the potential negative impact on investment sentiment due to these developments.

The future stock performance of gambling companies in Macau and the effectiveness of the new law against illegal money exchange remain uncertain.