Hong Kong (AFP)
The big groups of casinos in Macau saw their stock market prices fall Wednesday after the announcement of a plan for greater political control over the gambling industry in this city nicknamed the "Las Vegas of China".
On the Hong Kong Stock Exchange on Wednesday, shares of Sands China and Wynn Macau tumbled more than 24%, while those of Melco Entertainment, SJM Holdings, MGM China and Galaxy Entertainment fell 13% to 17%.
The drop comes after the Macau government on Wednesday launched a 45-day public consultation on a proposal to increase oversight of the gaming industry, which has already experienced increased scrutiny in recent years.
The government of this semi-autonomous region of China intends to place representatives on the boards of directors of licensed casino operators to oversee their operations and crack down on underground banking activities in the area.
Groups threatened with tightening restrictions hold all six licenses to operate casinos in Macau, the only city in China where gambling is permitted.
These licenses expire in June 2022 and operators will have to bid to renew them.
Macau is almost entirely dependent on the gambling industry, which earns more in a week than Las Vegas in a month.
This activity represents nearly 80% of government revenue and 55% of the city's GDP.
More than 82,000 people worked in the sector at the end of last year, or more than 17% of the city's labor force.
While recognizing this weight, the Macao government expressed concern about the excessive dependence of the local economy on this industry and the resulting increase in the cost of living and doing business.
© 2021 AFP