Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 percent of mass market turnover. (Image: wikipedia.org/Brenden Brain)
The effect of China’s imminent crackdown on the use of hand-held card swipers is being felt in Macau, with the Wynn Macau witnessing its biggest market decline since October 2011.
Macau’s casino economy has soared over the last couple of years, so much so that it now eclipses vegas since the gambling money of the world, however the Chinese government’s sudden enforcement of a ban on unlawful money transfers has investors worried; Wynn Resorts Ltd. fell recently to 8.5 percent at the close in Hong Kong trading, while MGM China Holdings Ltd. dropped 8.2 per cent for the same period. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands Asia Ltd. dropped 4.6 percent, and SJM Holdings Ltd., 6.6 per cent.
People to Macau from the mainland are permitted to bring only 20,000 yuan ($3,200) into the gambling hub and could only withdraw 10,000 yuan per time, per card, from money devices. To swerve the restrictions, tourists have the ability to purchase goods from local pawn shops utilizing their debit cards then trade them for regional currency with the same pawnbroker.
Illegal Card-Swiping Amounts to $6 Billion
However, the use that is increasing of machines in casinos has perhaps not only caused a slump in Macau’s pawnbroking industry, but it is additiona Read More