(illegal changers) Effects of the crackdown by the Chinese authorities on unlicensed cross-border money exchange

out24

Unlicensed foreign-currency exchange (FX) for Macau gambling will be considered a criminal matter if the authorities there deem it is being done as a trade activity, regardless of whether it takes place in or outside casinos.

That is according to Thursday commentary from veteran legislator Chan Chak Mo (pictured), with the latest explanation of the local government’s intention regarding a bill with provisions to criminalise gambling-related unlicensed exchange. Mr Chan heads a Macau Legislative Assembly committee tasked with scrutinising the bill.

The planned legal change can cover transactions for gaming purposes done outside the city’s casino resort complexes, as long as law enforcement bodies were able to gather “sufficient evidence”. He noted at a media briefing on Thursday, that the bill was likely to have its second and final reading at a plenary session of the assembly “within this month”.

The criminalisation aim of the authorities had been announced in August, under article 11 or the draft ‘Law to Combat Gambling Crimes’. At that time there had been mention specifically of unauthorised exchange in gaming or non-gaming areas of casinos.

Under the updated commentary, any gambling-related foreign exchange activity that could be characterised as part of an “operating business”, could fall under the scope of the provisions.

https://www.ggrasia.com/irregular-macau-gaming-fx-to-be-criminalised-beyond-casinos/

ago24

The government’s recent crackdown on unauthorised money exchanges has not led to cutbacks in casinos’ premium mass segment, Inside Asia Gaming (IAG) reports – citing a note from Citibank analysts.

Indeed, analysts George Choi and Ryan Cheung noted that both year-on-year and month-on-month premium mass wagers appeared to be surging during their recent inspection of the SAR’s integrated resorts. The pair said they saw 25 so-called ‘whales’ while in the city, betting as much as HK$600,000 (US$77,000) per hand. Whales are defined as players betting HK$100,000 per hand or more.

“The fact that this happens after the Macao government’s decision to criminalise illegal money exchanges within casino premises means that most players, via legitimate channels, are still able to get their funds to the Macao casinos,” Choi and Cheung said.

https://macaonews.org/news/business/macau-casinos-premium-mass-money-exchange-macao-citibank/

ago24

According to Carlos Siu Lam, an Associate Professor at the Macau Polytechnic University Center for Gaming and Tourism Studies, these changes are part of a larger effort by mainland China to crack down on illegal financial activities.

“With the increased number of cases related to illicit money exchanges—such as unauthorized credit services, cross-border money remittances, and group fights among casino patrons—it’s clear that such acts are not vastly different from those of junket operations in the past. There is a pressing need to suppress these activities”, Siu told AGB.

https://agbrief.com/intel/deep-dive/20/08/2024/macau-legislative-amendments-to-target-illicit-money-exchange-operations-follow-mainland-china-directives/

agot24

Melco Resorts Chairman and CEO Lawrence Ho has played down the impact a recent crackdown by authorities on Macau’s illegal money exchange activities has had on the gaming market, describing seasonality and the Euro 24 football championships as more meaningful contributors to recent softness.

He also noted that gaming volumes have shown steady improvement since mid-July, with the impending completion of upgrade works at both City of Dreams Macau and Studio City expected to further support growth for the remainder of 2024.

Ho was asked about the impact of the money exchange crackdown – first announced by mainland authorities in May – during Melco’s 2Q24 earnings call overnight. The issue again hit the news late last week when Macau’s Legislative Assembly unveiled plans to criminalize money exchange gangs under the “Illegal Gaming Offences”, which is punishable by up to five years of imprisonment.

“I think the money changer issue, it’s not new,” Ho said. “It’s been talked about for over a year now so it’s not a surprise to us.

“Of course, it has a bit of an impact in terms of liquidity to players, but I think the bigger issue in terms of the softness in June – and we saw growth in July already and August is off to a very good start – it’s more related to the Euro champs, which lasted from mid-June to mid-July.

“Also, this year the Chinese school holiday started two weeks later, so it didn’t really start until mid-July. What happens there is parents want to stay home and make sure that the kids done with final exams before they travel.

https://www.asgam.com/index.php/2024/08/14/lawrence-ho-seasonality-more-than-money-exchange-crackdown-behind-recent-softness-in-macau-gaming-market/

agot24

A 40-year-old mainland Chinese man was murdered in a hotel room at Wynn Palace on Wednesday in a case police say is related to Macau’s money exchange gangs.

According to information provided to the media on Thursday afternoon, the murder took place at around 4pm on Wednesday with the suspect alleged to have robbed the victim of more than HK$2.5 million (US$321,000). The two men were known to each and other and both members of a gang.

The victim was discovered after a family member who was unable to reach him contacted hotel security, with guards finding the body in the bathroom of his hotel room.

After receiving a report, police launched an investigation and found that the victim had a 20-centimeter-long knife wound on his neck, with traces of an attempted cleanup at the scene of the crime. A mainland man and Hong Kong woman were arrested a short time later.

https://www.asgam.com/index.php/2024/08/08/money-exchange-gang-member-killed-and-robbed-of-hk2-5-million-in-hotel-room-at-macaus-wynn-palace/

0agot24

The Macau government is to criminalise the unlicensed changing of money within a casino setting for the purposes of gambling, including such exchange activity in non-gaming areas of such premises. There will be a penalty of up to five years’ imprisonment for those found guilty.

The provision has been added to the latest draft of the ‘Law to Combat Gambling Crimes’. Previously, the city’s authorities had indicated they were not minded to add such a step to the bill.

The information on the change of mind was given on Friday at the city’s Legislative Assembly by Chan Chak Mo (pictured, right), a veteran legislator who heads a committee tasked with scrutinising the bill. He was relaying information passed to the committee, by the city’s government.

He was speaking to the media following a closed-doors meeting of the committee.

Mr Chan mentioned that those found guilty of such an offence could also face a Macau casino entry ban of “two to 10 years” in length.

https://www.ggrasia.com/macau-to-criminalise-unlicensed-money-exchange-in-casinos/

jul24

The situation in Macau appears largely unchanged over the past week, which is a stable development following a disappointing start to the month. However, ongoing regulatory scrutiny on currency exchanges and broader macroeconomic concerns in China continue to cast a shadow, the memo notes

Industry sources report that Macau’s gross gaming revenue (GGR) for the week ending July 21st averaged MOP635 million ($79 million) per day. For the month-to-date, Mass GGR increased by 1-2 percent, while VIP GGR remained flat month-on-month, with the VIP win rate ranging between 3.3-3.6 percent.

https://agbrief.com/news/macau/23/07/2024/macaus-macro-conditions-challenge-gaming-performance-jefferies/

juk24

Investors’ concern about a possible crackdown on illegal cross-border fund flows and its potential impact on Macau’s gross gaming revenue (GGR) is likely ‘overdone’, brokerage firm Citigroup has said.

In a recent update, analysts George Choi and Ryan Cheung noted that gaming demand in Macau is showing improving trends in July, despite the action taken to curb illegal money exchange activities that began in June.

“We continue to believe that most players in Macau have their own legitimate ways to get their funds over to Macau, sufficient for them to bet as much as HK$1 million/hand,” the analysts wrote.

Earlier in June, China’s Ministry of Public Security urged security forces, not only in Macau but also on the Chinese mainland, to strengthen cooperation in clamping down on illegal money exchange in Macau.

https://www.macaubusiness.com/macau-gaming-still-resilient-amid-illegal-money-exchange-crackdown-citi/

jul24

Some mainland China players may have put off visiting Macau in June amid publicity about a crackdown by the Chinese authorities on unlicensed cross-border money exchange, says a Monday note from Seaport Global Securities LLC.

“We believe this crackdown round is having some negative impact on money flows into Macau and certain individuals have postponed their visits to Macau,” stated analyst Vitaly Umansky.

The authorities’ activity “will likely continue to be somewhat of a headwind to GGR [gross gaming revenue] over the next month or two,” he wrote.

But Mr Umansky added: “We expect the crackdown to soften and liquidity in Macau to be not significantly impacted in the medium term.”

https://www.ggrasia.com/some-players-avoiding-macau-amid-cash-crackdown-analyst/

jul24

Junho é um mês tradicionalmente mais fraco no sector do jogo, mas o anúncio das autoridades chinesas relativo à repressão sobre o câmbio ilegal de dinheiro poderá ter travado a vinda de visitantes do Continente chinês ao território, refere a Seaport Global Securities. Além disso, e com o Euro 2024 a decorrer, as perspectivas em relação às receitas do jogo para o próximo mês também continuam abaixo daquilo que seria normal, segundo a consultora

https://jtm.com.mo/local/repressao-aos-cambistas-ilegais-afecta-receitas-dos-casinos/

 jul24

The Macau authorities have intercepted a total of 1,942 unauthorised currency changers in the first five months of 2024, subsequently barring them from entering the city. That is according to information disclosed by Judiciary Police Director ,Sit Chong Meng, in a speech on Friday.

In conjunction with these efforts, the local casino regulator, the Gaming Inspection and Coordination Bureau (DICJ), has banned 927 individuals from entering casinos due to their suspected involvement in money-changing activities. Mr Sit said they were significant steps taken to curb these illicit operations.

He also mentioned that 30 Macao ID holders caught allegedly participating in unauthorised currency exchange activities had been referred to the Monetary Authority of Macao, the city’s financial regulator, for further proceedings.

https://www.ggrasia.com/900-plus-forex-touts-barred-from-macau-casinos-police/

ju24

Some mainland China players may have put off visiting Macau in June amid publicity about a crackdown by the Chinese authorities on unlicensed cross-border money exchange, says a Monday note from Seaport Global Securities LLC.

“We believe this crackdown round is having some negative impact on money flows into Macau and certain individuals have postponed their visits to Macau,” stated analyst Vitaly Umansky.

The authorities’ activity “will likely continue to be somewhat of a headwind to GGR [gross gaming revenue] over the next month or two,” he wrote.

But Mr Umansky added: “We expect the crackdown to soften and liquidity in Macau to be not significantly impacted in the medium term.”

June GGR might also have been negatively affected by the Euro 2024 international soccer tournament in Germany running from June 14 to July 14. Macau in June typically had modest play volumes anyway, said Mr Umansky.

https://www.ggrasia.com/some-players-avoiding-macau-amid-cash-crackdown-analyst/