Gambling has long been a lucrative industry in China, especially in Hong Kong and Macau. This is mainly due to foreign tourists who come to these areas for gaming, entertainment, and fine eating. But the country’s gaming industry may not have a bright future. This is confirmed by Andrew Lo, executive director of Suncity Group Holdings, Ltd. We do not see a rosy picture for 2019, says Lo, going on to explain that this is because Suncity Group Holdings, Ltd., the publicly traded division of the company, “Macau’s business depends on China’s economy and policies so much.” Lo’s division handles the casino gaming rooms business, offering credit to wealthy gamblers. Lo says, “If we can still have some growth next year, that’s already fantastic news for us.”
It is also evident that the mainland stock and real estate markets are important in attracting wealthy Chinese gamblers, and these two markets are both currently experiencing a decline. According to analysts polled by Bloomberg, gambling in Macau will fall. According to the poll, gaming revenue growth would fall from 19 percent in 2017 to 14 percent in 2018, and analysts forecast that revenue will drop by 5% more in 2019.
The Rising Macau Gambling Industry
The gaming industry is making an increasing amount of money from mass-market travelers. These visitors spend a lot of money on food and entertainment, and they frequently visit casinos while doing so. Additionally, Macau has some brand-new casinos and tourist destinations, and many of these places are recent constructions. Even though some firms are unsure of Macau’s casino licensing, some enterprises have opened. These companies refer to as “concessions” by the Macau government.
In Macau, there are just six gambling operators having license. The MGM and SJM licenses will run out in 2020, and Wynn, Sands, Melco Resorts, and Galaxy Entertainment Group will all have their licenses expire in 2022.
The Macau government said that at the end of 2018 would announce some of the specifics of the bidding process. According to government officials, casino operators will have to submit a bid for license renewal. For the businesses to keep operating, the government must also approve the request for renewal.
Hoffman Ma, the Success Universe Group Ltd.’s deputy chairman, discussed the situation of gambling in Macau. Success Universe Group Ltd. invested in an SJM Holdings Ltd. casino’s gaming license. Ma said, “We are optimistic that Macau still has significant potential to attract more visitors and gamblers.” The chairman said this was because the process for license bidding is still “unclear,” and he confirmed that investing in a business that may not be able to operate in two or three years is “too risky.” Ma also states, “In the next one or two years, Macau operators are unlikely to make investment decisions in Macau.”
Macau’s American Gambling Establishments
Asian gaming consulting company iGamiX’s Macau managing partner, Ben Lee, made a statement about this. The trade war, according to Lee, “has heightened the danger for U.S. operators.” American businesses hold half of the Macau licenses. Lee affirms that Beijing “Already does not sit well with the bad changes in gaming.”
Some executives, though, are still upbeat. One of these executives is Jim Murren, the chief executive of MGM Resorts. He believes tensions between the United States and China won’t impact Macau casino licenses. It’s not my place to comment, but Macau is a great economic engine for China and the Macau government, according to Murren.
Lawyer and gaming consultant Carlos Lobo also discusses the subject of Macau’s gambling licensing. According to him, license applicants will probably receive fair treatment. Lobo, corporations won’t likely receive special treatment depending on their country. According to the lawyer, businesses concentrate on initiatives that would benefit Macau in the long run. However, Lobo warns that “operators may have difficulty in Macau if they attempt to play international politics.”
Read more: Macau Casino Games
Casino gaming has its earliest recorded history in ancient China. A well-known Chinese monarch allegedly won the lottery multiple times throughout his reign. It was thought that an emerald pattern provided by a visiting Emperor was what caused it.
The Gambling Laws of China
Officially, Chinese Law still doesn’t allow gambling. However, Chinese nationals are permitted to engage in gambling “in practice,” which entails participating in state-run lotteries. Additionally, gambling have permission in some parts of Macau and Hong Kong for Chinese people. These nations share a legal system with Portugal and the United Kingdom, the European countries that formerly controlled those Asian areas.
The China Welfare Lottery and the China Sports Lottery are the two lotteries currently run by the Chinese government. The government says that these lotteries are not regarded as gambling. Even though gambling don’t have permission in the nation, many residents continue to engage in illegal gaming. On the mainland of China, there have been various attempts to build casinos, and there won’t likely be any more casinos in China. The Chinese government also outlawed all forms of online poker in 2018, which suggests that overall gambling in the nation will probably decline over the next few years.s