Macau casinos’ higher minimum wages heightening levels of debt

A recent study by scholars from universities in Macau and the mainland has shed light on the stark differences in the characteristics and struggles of gamblers across three regions: the mainland, Hong Kong and Macau.

The analysis was based on data collected from gambling helpline callers between 2015 and 2021. The study titled “Characteristics of Gambling Helpline Callers in Macao: A Regional Comparison,” as cited in an Asia Gaming Brief report, revealed that Macau gamblers seeking help face more severe debt issues compared to those in other regions.

Published in the Journal of Gambling Studies, scholars from the Macao Polytechnic University, the School of Tourism Management at Macao University of Science and Technology, and Guangzhou Xinhua University, found that 32.7% of Macau helpline callers indicated debts exceeding MOP200,000 – which is more than double the proportion in other regions.

This points to a more severe debt situation among help-seekers in Macau. The high minimum wagers at Macau’s table games, typically MOP120- 514 per hand, contributes to this heightened level of debt with some increasing to MOP1,000 during holidays or weekends.

The study surveyed 943 gamblers seeking assistance through local helplines – with the majority originating from Macau. The results indicate that 72.9% of callers were in debt, with slightly over 40% owing less than MOP200,000, 9% owing more than MOP1 million, and 7% owing between MOP500,001 and MOP1 million.

The comparison between the data from the three regions uncovered a higher proportion of Macau and mainland callers’ gambling problems involved casino table gambling, while Hong Kong callers reported problems with sports betting. The study also found that the average length of gambling problems was slightly over seven years.

The disparity in gambling jurisdictions is a significant factor in the differences observed. Mainlanders need to travel to Macau to gamble legally in a casino, resulting in similar gambling problems to Macau callers. Hong Kong callers, on the other hand, reported problems with sports betting due to the legal availability of horse racing and soccer betting in the region.

The study highlights the need for a more tailored approach to Macau’s helpline services, where the referral rate is relatively low. Referrals are essential for further treatment and improving gambling issues, but they are primarily conducted via face-to-face counseling, which is not helpful for non-local help seekers.

The high rate of debt among mainland callers to gambling helplines stresses the need for financial counseling and support services beyond Macau. Researchers have noted that the prevalence of suicidal thoughts is alarming, demanding swift and evidence-based interventions to address the issue.

“Counseling organizations should prioritize the development and implementation of evidence-based strategies for suicide prevention. This may involve training counselors to recognize and respond to suicidal ideation and establishing clear protocols for risk assessment and subsequent actions,” the report said.

The study suggests the establishment of cross-border collaboration in monitoring and managing cross-border gambling activities and sharing information on effective treatment and prevention strategies.

As the gambling industry continues to evolve, it is crucial that policymakers and treatment providers work together to develop effective strategies for preventing and treating gambling problems, particularly among vulnerable populations such as young individuals and students.