For its part, Suncity has denied any involvement in illegal activities and online gambling. Suncity CEO Alvin Chau is also committed to regulating all of the company’s overseas operations to comply with Macau’s laws.
However, Japan’s Nikkei Asian Review recently suggested that Beijing’s campaign was not aimed at casinos in Macau. Macau is different. By being given a separate mechanism, this special zone is the only place in China allowed to operate a casino.
CLSA analyst Jonathan Galligan thinks the crackdown is undermining Macau’s position. Galligan, as well as market observers, said gambling businesses in Macau had turned their attention back to their home countries.
According to Nikkei, Chinese casinos and big players are increasingly interested in the Southeast Asian market thanks to some financial benefits. Regional casinos often have higher commissions and discounts than Macau, largely due to low taxes. For example, the NagaWorld casino in Phnom Penh pays commissions nearly double the highest allowed by the Macau government.
Grant Govertsen, head of Asian research at Union Gaming Investment Bank, estimates that Southeast Asian online casino games sucked more than $ 1.4 billion in winnings from Macau’s VIPs in 2018. He This is because of the improved quality of casinos.
Macau casino patrons are becoming sensitive to slowing economic growth, a weaker yuan and an escalating trade war with the US. That makes very few experts can be confident about the recovery of Macau.
Specifically, the gamblers are still in China but connected via an online video link, betting on the phone by reputable representatives sitting at the table. This is illegal activity in Macau. The Beijing government is especially worried since the operation in full.
Macau’s total winnings from VIP gamblers decreased by 14.5% to $ 8.89 billion in just the first half of 2018 compared to a year earlier, according to the Macau Gambling Testing and Inspection Department. Meanwhile, Southeast Asian casinos continued to grow strongly in the same period.