MACAU BUSINESS By Tony Lai By Paolo A. Azevedo Exchange risks
Central authorities have doubled down on their commitment to curb illicit money exchanges in Macau, which have surged in the post-Covid era amidst the absence of junkets. The ongoing crackdown is starting to weigh on the performance of the gaming industry. While experts believe the impact is limited at this stage, concerns are growing about how this problem could be resolved at its core.
Jeju – the new Singapore
M
month following the call to enhance collaboration between security forces in Mainland China and Macau against illicit money exchange activities, the Chinese Ministry of Public Security convened a press conference in early July to reiterate its commitment to cracking down on these unauthorised trade in Macau, particularly those associated with the city’s casinos. This escalated scrutiny from Beijing is a familiar sight for the region, given its recent endeavours to curb capital outflows to Macau for gambling purposes. Nonetheless, questions persist regarding how this flow can be effectively stemmed and the local gaming industry might be impacted.
A 18 OCTOBER 2017
This illicit practice, known colloquially as “money exchange gangs,” involves individuals
30 SEPTEMBER 2024
acau Business – From Lotte World, a major recreational complex [with the world’s largest indoor theme park, in Seoul] to an integrated resort with casino in Jeju. A different beast. A
natural evolution? Lawrence Teo – Business is the same. But building
a landmark. M. B. – The group [Lotte] has created other landmarks in different types of business. Why would this be different? L. T. – Yes, Lotte Group has already created
downtown Seoul and Lotte Super Tower. We’re trying
enticing gamblers—primarily from Mainland China—to exchange currencies at more favorable rates, circumventing the mainland’s strict capital controls. Currently, under existing regulations, individuals, both mainland Chinese residents and tourists, are restricted to carrying a maximum of RMB20,000 (US$2,766) in Chinese currency and foreign currencies of not exceeding US$5,000, when exiting the mainland.
In light of these constraints, it comes as no surprise that illicit currency exchange activities, underground banking operations, and illegal UnionPay point-of-sale (POS) machines have been identified as conduits for moving money from the mainland to fuel gambling habits in Macau and beyond. “These ‘money exchange gangs’ have been
want to achieve with this Integrated Resort (IR)? L. T. – Number one EBIDTA on IR in Korea. There’s
ingrained in Macau’s casinos for years... and their operations extend beyond mere currency exchange,” highlights U Io Hung, a seasoned junket representative in Macau. “It is sensible that authorities are now giving this issue increased attention, especially with the uptick in security incidents and crimes associated with these activities,” Mr. U adds, who is the president of the Macau Professional Association of Gaming Promoters.
‘MORE ORGANISED’
According to the data released by the Office of the Secretary for Security of Macau, the number of criminal cases associated with illicit currency exchange surged to 149 cases in the first quarter of 2024, marking an increase of 107 cases compared to the same period in 2019.
Jeju will be as big as Singapore in terms of Gross Gaming Revenue, predicts Lawrence Teo. The Chief Operations Officer and Vice President of Dream Tower, the tallest Integrated Resort under construction on the Korean destination island, explains to Macau Business why Lotte Tour decided to enter the casino business and create a landmark. All bets are on making the casino resort the crown of the tourism jewel the company has been dominating for four decades
to do the Dream Tower in Jeju. Lotte here is being just a family company; we’re a different company [Lotte Tour]. It’s not going to be [just] the tallest and the largest building in Jeju, that’s just the hardware. We say that a landmark should be the most visited destination, where tourists will go to eat, shop and maybe [visit] our observation deck. A must-visit point destination. Because of the hardware, and also the software.
M. B. – What are the main goals that you definitely
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80
