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Monday, January 30, 2023

Macau casinos lose billions in value due to possible new Chinese controls

15 September (WNN) — Casinos in the Chinese region of Macau, which has long been one of the world’s biggest gambling hubs, lost billions in value on Wednesday after Beijing launched a special review period allowing tighter controls on the gaming industry there. could.

Shares of Macau casino operators fell in early trading and analysts said the overall losses reached a combined $20 billion. Shares of Wynn Macao and Sands China were down nearly 30% at one point on Wednesday.

The price drop comes a day after Macau’s Economy Minister Lei Wai Nong announced that a consultation period to investigate deficiencies in casino supervision in the Chinese Special Administrative Region would begin on Wednesday.

Regulators are expected to evaluate how many gaming licenses can be granted, the length of their terms and the depth of government involvement.

The announcement came as a surprise to casinos that operate in the only region of China where gambling is legal.

“The casino issues are a continuation of a much bigger crackdown,” said Jason Eder, CEO of SpringOwl Asset Management, a New York-based investment manager, according to Bloomberg.

Macau has seen tighter security in recent years as authorities sought to target illegal cash flows from China. Earlier this summer, China doubled the number of inspectors in the area and increased surveillance.

Beijing has recently increasingly cracked down on certain aspects of society, setting new rules for things like video games for children and tighter controls for major tech companies.

The potential new rules also come at a time when Macau is experiencing a decline in tourism, mainly due to restrictions related to COVID-19.

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World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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