In a brief but potentially game-changing visit to Macau last month, Chinese President Xi Jinping indicated that oversight of the island’s once-booming casino industry could increase, and the gaming mecca should prepare to develop other revenue sources.
Last year the Chinese government cracked down on money laundering in an effort to keep money from illegally exiting the mainland, which has seen an economic slump. As part of the effort, the government gave China’s Economic Crimes Investigation Bureau access to transactions made with state-backed UnionPay credit cards, according to the South China Morning Post.
The discouraging effect on once-freewheeling high rollers has already extracted billions in revenue from the gaming enclave. The island lost a combined $58 billion in market value in just six months in 2014, according to Reuters.
In a two-day visit in December to celebrate the 1999 handover of Macau from Portugal, Xi warned government officials to be mindful of the proverb, “Be prepared before the rainy days come.”
“Our sage said that, ‘One thrives in concerns and calamity whereas perishes in ease and pleasure,’” Xi told M SAR representatives. “Macau is now in a very good situation. In some aspects it’s even unmatched. But we need a sense of crisis to solve some deep-seated issues.”
