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July 31, 2021

New measures are expected to have a negative impact on the VIP sector

New casinos on Cotai Strip to face tightened anti-money laundering regulations

New casinos on Cotai Strip to face tightened anti-money laundering regulations
According to information published on the site of the Gaming Inspection and Coordination Bureau, Macau-based casinos have to comply with new regulations, which are much broader as compared to the last version issued a decade ago.
Macau | 06/07/2016

According to information published on the site of the Gaming Inspection and Coordination Bureau, Macau-based casinos have to comply with new regulations, which are much broader as compared to the last version issued a decade ago.

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n accordance with market analysts, the new measures require Macau-based casinos to keep daily records and arrange compliance officers. These measures are expected to have a negative impact on the VIP sector and to boost casinos’ operating costs. 

Plus, gambling venues, as well as junkets have to switch to more pre-emptive measures in addition to the operational obligations.

Bearing in mind their relatively high VIP exposure, market analysts predict that SJM Holdings, Wynn and Galaxy Entertainment are most likely to experience the negative effects of the new regulations.

 

Despite the intensified anti-corruption campaign and the rapid decrease in revenue over the last two years, three luxurious casino resorts are slated to open on the territory of the former Portuguese colony

 

Macau casinos are now obliged to prove the authenticity of suspicious reports compiled by junket operators. Neither casinos nor junkets are allowed to work in collaboration or to provide services to anyone using an alias. In case an operator wants to make a transaction of over MOP 500,000, the identity of the ultimate beneficiary would be required.

The tight anti-money laundering regulations that have come into force recently, made analysts downgrade the sector and cut their forecast as far as the annual revenue is concerned.

Despite the intensified anti-corruption campaign and the rapid decrease in revenue over the last two years, three luxurious casino resorts are slated to open on the territory of the former Portuguese colony.

In the summer, Louis XIII is expected to welcome its first visitors. The property will host a casino as well as private gourmet restaurants, luxurious hotel rooms, invitation-only boutiques. The resort was valued at $1 billion. It is owned by Stephen Hung.

The second resort, expected to open in the second half of 2016 is The Parisian Macao, a venture of Las Vegas Sands and its subsidiary Sands China. As its name implies, it will be a French-themed resort featuring a plethora of gambling, dining, and entertaining facilities.

Last but not least, the opening of MGM Cotai is anticipated in the fourth quarter of 2016. The property, which has already been defined as the “jewellery box” on the Cotai Strip, is expected to provide innovative entertainment options and to become an appealing spot for both mass market customers and high rollers.

 

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