HONG KONG - China's move to stamp out online gambling to help contain capital outflows is hitting liquidity in Macau's VIP segment, at a time when the world's No. 1 gambling hub is hobbled by slowing economic growth, Sino-US tensions and coronavirus lockdowns.
Casino executives and junket operators in Macau, a special administrative region where casino gambling is legal, say the crackdown is hitting big spending VIP customers due to worries over their financing channels via the junkets. The VIP junket sector in the former Portuguese colony accounts for almost 50 per cent of overall revenues, which hit US$36.5 billion last year.
"China clearly intends to cut out these middlemen and gain better control over the outflows of renminbi through Macau."Macau junket executives said while China was not targeting the Macau casino industry itself, the focus on money laundering and illegal transactions put pressure on liquidity. Macau's police and gaming regulator were advised of the withdrawals, the notice said, while photographs on Wechat showed dozens of investors lining up outside Macau's luxury parlours to withdraw cash amid fears it would be seized by authorities.