The crackdown on illegal money exchanges, marked by increased police presence on casino floors, could negatively impact summer holiday visitation, according to a recent report by brokerage firm Jefferies.
The report notes the heightened focus on illegal fund flows in Macau follows a recent press conference by China’s Ministry of Public Security, where authorities vowed to strengthen cooperation between Macau and the Chinese mainland in clamping down on illegal money exchange activities.
‘Money changers’ who operate around Macau’s casinos have been identified as a key channel for illicit fund movements between the Chinese mainland and Macau.
“We are keeping a close eye on this change, as the heightened focus could deter summer holiday visitation, especially following China’s Ministry of Public Security’s recent press conference regarding the illegal money exchanges in Macau on July 5,” the Jefferies analysts wrote.
Despite the ongoing crackdown, the equity research team emphasized that daily gaming revenue estimates for the rest of the month stand at MOP560 to MOP 660 million per day, implying a monthly revenue range of MOP18.4 to MOP19.4 billion.
However, the analysts noted the uncertainty around macroeconomic conditions in Macau “continues to temper momentum in the market,” putting pressure on the performance of gaming operators in the region.
“Macau continues moderate post-COVID recovery, but China’s macro-overhang remains a barrier,” the Jefferies analysts concluded. Victoria Chan
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