Chinese Government Card Swipe Crackdown Hits Macau



Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 per cent of mass market turnover. (Image: wikipedia.org/Brenden Brain)

The result of Asia's imminent crackdown on the usage 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 within the last couple of years, so much so that it now eclipses nevada as the gambling capital of the world, but 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 % for the same duration. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands China Ltd. dropped 4.6 %, and SJM Holdings Ltd., 6.6 per cent.

People to Macau from the mainland are permitted to bring no more than 20,000 yuan ($3,200) into the gambling hub that can just withdraw 10,000 yuan per time, per card, from cash devices. To swerve the restrictions, tourists are able to buy goods from local pawn shops making use of 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 gambling enterprises has not only caused a slump in Macau's pawnbroking industry, but it is additionally got להמשיך לקרוא