MACAU BUSINESS
COVID-19, there are still many uncertainties clouding the mainland economy, such as the trade war and relationship between China and the United States,” he emphasises. “Should the mainland economy remain in bad shape, the gross gaming revenue will remain lacklustre, even when the mainlanders are allowed to visit Macau freely again due to their low spending power.” China reported a 3.2 percent growth in gross domestic
product (GDP) in the second quarter of this year, recovering from the first quarterly contraction of 6.8 percent in decades in the January-March period. Yet analysts have cast doubt on this rosy picture, as the Chinese official data has long been regarded by some as “manipulated”. In the perspective of Mr Lam, the slow repayment rate of mainland gambling patrons in settling their debts reflect the mainland economy is still far from the best. “Last year, for instance, every RMB100 million in credits we extended to a mainland client, we could get back about RMB10-20 million in average a month,” he illustrates. “The situation for this year: we will be extremely glad if we could overall get back RMB5 million for RMB100 million in credits.”
No meeting In face of the downturn, some stakeholders in the gaming industry, including junket operators, have asked the Government to allow telephone proxy betting again and online casino gaming. Telephone proxy betting, a practice in which a third party makes a bet in person at a VIP room on behalf of a client via a telephone or other devices, had
been permitted in the city until May 2016, when DICJ banned phone usage at gaming tables. The Power of the Macao Gaming Association, mainly formed by gaming employees, met Secretary for Economy and Finance Lei Wai Nong in May in deliberation of various topics, including the possibility of allowing telephone proxy betting again to stimulate the local gaming sector and economy. Another junket source, which also spoke on the conditions of anonymity notes, not only has this call fallen onto deaf ears, but also the officials have so far avoided to meet junket operators. “The junket representatives have asked to meet Secretary Lei and the new DICJ director to discuss their latest situation, but the attempt has been in vain,” the source said. “[The officials] probably think the meeting would not be productive, as they know they could not address the requests of the junkets.” Adriano Marques Ho, a former advisor to the
Secretary for Security, was sworn in as the new boss of the local gaming regulator in June, replacing Paulo Martins Chan who had occupied the top post for about four and a half years. Mr Ho was also the head of the Macau Sub-bureau of the China National Central Bureau of Interpol between 2004 and 2010. “Owing to his resume, it is expected there will be
heightened scrutiny over the capital outflow of the mainland via the casinos here, which will likely deal another blow to the junket segment amid the recovery of the segment from the pandemic,” the same source notes. “The impression [some junkets] have upon the new-term Government so far is evasive and indifferent.” The former officials in charge of the gaming policy, including Mr. Paulo Chan, and Lionel Leong Vai Tac, former secretary for economy and finance, had kept frequent exchanges with the junket segment, Mr. Lam comments, who hopes the officials from the new-term Government that was sworn in last December, will carry on this practice. “We wish to continue maintaining constant exchanges with the authorities, especially in this life-and-death stage.” “It is important for the policy to reflect the voice of the industry as the Government is preparing for the renewal of casino gaming licenses by 2022 and amend regulations for the junket sector,” he reasons.
28 SEPTEMBER 2020
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