Li Gang
The head of the Central Government’s Liaison Office in Macau, Li Gang, claimed there are various reasons that led to the decline in the region’s gaming revenue. He is also confident that the gaming industry will return to a stable condition mid-year.
While admitting that the central government has invested extra effort into combating corruption, Li said it is not the main reason behind the tumbling gaming revenue. He stated that the reasons also include “the slowdown in China’s economy (…) the increase in casinos in regions near Macau, the tightening of control in visitor arrivals, as well as the natural adjustment of the Macau gaming industry. You cannot say that the drop is due to the central government’s tackling of corrupted officials. [Those corruption officials] were only very few [in number]… How many corrupt officials do you think have come to Macau? The gaming revenue of Macau in a year is MOP330 billion. How much do you think the corrupt officials can embezzle?” he said.
Mr Li also said that Macau’s current situation has not worsened to the point of needing assistance from the central government. He said that the fall in the gaming revenue is mainly due to a decline in the VIP market. But the mass market is still growing.
He thinks that Macau is only changing from a high-speed growing stage to a mid-speed stage. After some adjustments, he believes that the gaming industry will recover.
Moreover, the Liaison Office head has asked the Macau government to “widely consult the opinions of the public” regarding the review on gaming licenses. He said that the MSAR administration has to properly settle the relationship between the development of the gaming industry and the diversification of the Macau economy.
Meanwhile, the China Daily reports that the central government will strengthen its supervision over the assets of corrupt officials who may transfer their assets abroad through the casinos in Macau. South China Morning Post (SCMP) also reported that mainland officials may visit Macau to meet officials of the territory’s financial watchdog and bankers.
When asked about the SCMP report, Li Gang said he did not receive any relevant information on the issue. JPL
Gold Moon Group closes Cotai Central VIP rooms
The junket operator Gold Moon Group on Tuesday decided to shutter its VIP room located at Sands Cotai Central. But four other VIP rooms belonging to the group in the Altira, Galaxy, Wynn and Landmark will remain open. Before the closure of the Cotai Central VIP room, Gold Moon had a total of 86 VIP gaming tables. Information from the company’s website shows that its first VIP room was opened in 2007 in the Altira, with 35 gaming tables. The closing of the Gold Moon VIP room followed another junket operator David Group’s decision to close three of its VIP rooms. A member of the group’s senior management told the Hong Kong Economic Journal that the group has a bearish outlook on the future of Macau’s gaming industry so it is only preserving those VIP rooms that have guaranteed sources of guests.
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