Mere hours ago, Chinese authorities announced that they do realize what a devastating effect foreign gambling operators could have on the local economy so they would do their best to prevent them from entering the Chinese gambling sector.
The more foreign operators are enabled to operate in China, the less contracts between Macau and the other Asian countries, where the gambling segment is well developed, will be signed.
It is a well-known fact that these countries rely predominantly on local players in order to generate decent revenues. It is disputable how successful their attempts for keeping Asian players within their casinos are. Yet, they do believe that the availability of foreign gambling providers will only make matters worse.
Chinese residents are known for being passionate players. Since gambling activities are strictly prohibited on the territory of Mainland China, they frequently go to the nearest places where they are legally allowed to place their bets – namely Macau, Australia, the Philippines, etc.
However, the Deputy Chief of Security Management Bureau, Hua Jingfeng, said that regardless of the draconian measures taken by the government, it seemed like the illegal gambling problem was here to stay.
Hua further commented on the matter and said that Chinese authorities have already investigated hundreds of cases concerning illegal gambling. Yet, China remains an attractive market for foreign operators as it is believed to be among the most profitable ones on a global scale.
What is more, Hua confirmed that Chinese officials are familiar with the threats posed by neighboring countries, which have their offices on the territory of China. Their aim is to draw residents’ attention and convince them to go and participate in gambling activities in casinos based at their home countries. Hua reassured the communities that this issue will be handled as well.
As a matter of fact, many foreign companies rely on Chinese players including Melco Crown, Wynn Resorts, MGM Resorts, Las Vegas Sands.
Meanwhile, Asian gambling providers are relentlessly trying to attract Chinese players. A great part of them rely on the junket operators or Macau in order to attract high roller players.
Advertisements that promote or urge residents of Mainland China to take part in gambling activities are prohibited. However, operators found a more or less legal method for popularizing them. They simply promote the resorts where casino venues are situated.
In conclusion, Hua said that the intensified anti-corruption campaign will lead to cracking down on a “small number” of officials suspected of taking part in illegal gambling activities or helping their popularization.
