On Wednesday, Chinese President Xi Jinping revealed his plans, concerning the anti-corruption campaign he started last year. Those who keep themselves informed about the events related to the Asian gambling sector know that the anti-corruption program had a disastrous effect on the revenues generated in the most popular gambling hub in the region – Macau.
The fact that high-roller players have chosen other gambling destinations in order to avoid Jinping’s scrutiny, led to a record downfall in revenues. What is more, the decline, expected in January is believed to be more than 16% as compared to last year’s result.
However, the Chinese President remains reluctant to face the fact that his actions turned Macau-based venues into unprofitable ones. On Wednesday the president announced that he was not going to stop the above-mentioned campaign. On the contrary, he is planning to intensify it.
The session of the Central Commission for Discipline Inspection took place on Wednesday and its members set their main goals for the current year. Taking serious measures towards prevention of corruption schemes was among the priorities. Authorities will be extra careful when it comes to officials suspected in corruption. During 2014, a total of 68 officials were prosecuted and accused of having participated in illegal activities.
Apparently, before making this announcement, Chinese government members had realized that their decision is likely to make the local communities discontent; strikes and protests were also possible.
That is why they said that the anti-corruption program will not include randomly arrested people and imposing of severe penalties without convincing evidence. They said that the anti-corruption program requires “political composure, restraint and patience”.
It looks like everyone who has hoped for Jinping to slow down and let Macau bring its positions on the gambling market will be disappointed.
As a matter of fact, those who blame Jinping for the rapid decrease in revenues in Macau casinos are right to believe so. For example, the gambling sector in the Philippines reports satisfactory results but the difference is that Macau relies predominantly on high-roller players who used to form a significant percentage of the turnover.
However, according to the latest information, the so called high-rollers who play an essential role in the Macau revenue affairs are members of the government or executives of state-owned enterprises.
In other words, the anti-corruption campaign will continue keeping them out of the Macau casinos. What is more, a few days ago, Wong Sio Chak, the Secretary for Security recommended more people to be responsible for the security, but it will therefore lead to further decrease in revenues.
