Tourism agencies also in government sights
The Chinese government is reportedly investigating South Korean junket operators who are trying to lure Mainland VIPs to other Asian jurisdictions, such as South Korea and the Philippines. According to the World Casino Directory, a report from Bernstein Research says law enforcement in Shanghai, Jiangsu, Beijing and Hebei are looking at South Korean agents working in those cities. The investigative body may also target tourism agencies, which have helped gamblers obtain foreign visas.
“We reiterate our view that over the long run, Macau’s loss is no one’s gain when it comes to regional competition,” the report continued. The Chinese government under President Xi Jinping will continue to work to break the chain of money that is “offshored to foreign jurisdictions.”
“While regional markets may have some regulatory arbitrage opportunities against Macau (e.g. lower tax rate, more lenient gaming regulation and AML requirement), over the medium-term, we believe that Macau and China authorities may exert pressure on junket operations that aim to lure gamblers into the regional markets,” said the Bernstein report.
The research house says it estimates gross gambling revenue for Macau in August will be down 34 percent to 36 percent, reported the Asia Gaming Brief.
