Gambling funds obtained through illicit card-swiping in Macau are estimated to 12 percent of mass market turnover. (Image: wikipedia.org/Brenden Brain)
The consequence of Asia’s imminent crackdown on the use 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 final few years, so much so that it now eclipses Las Vegas because the gambling capital of the world, nevertheless the Chinese government’s sudden enforcement of a ban on illegal 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 period that is same. The Galaxy Entertainment Group Ltd., meanwhile, fell 7.6 percent, while Sands China Ltd. dropped 4.6 percent, and SJM Holdings Ltd., 6.6 per cent.
People to Macau from the mainland are permitted to bring only 20,000 yuan ($3,200) into the gambling hub and may also only withdraw 10,000 yuan per day, per card, from money machines. To swerve the restrictions, tourists have the ability to purchase goods from local pawn shops utilizing their debit cards then trade them for neighborhood money with the pawnbroker that is same.
Illegal Card-Swiping Amounts to $6 Billion
However, the increasing usage of card-swiping machines in casinos has perhaps not only caused a slump in Macau’s pawnbro