Macau casino stocks tumble over fears of increased government control
Macao depends almost entirely on the gaming sector, for 55% of its GDP, the island also brings in more in a week than Las Vegas in a month.
Anthony WALLACE AFP / Archivos
Text by: RFI Follow
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Casino shares are down sharply in China after Macao authorities announced plans for greater political control over the gambling industry in the city dubbed “China's Las Vegas”.
The losses of some of these establishments run into millions of dollars.
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This vertiginous fall, which sometimes reaches a quarter of the value of a security, comes after a 45-day public consultation has just been launched.
It aims to increase oversight of the gaming industry, which has already experienced increased scrutiny in recent years.
The government of this semi-autonomous Chinese region intends to place representatives on the boards of directors of casino operators.
Their role: to supervise operations and suppress underground banking activities.
Groups subject to these tightening restrictions hold the licenses necessary to operate casinos in
Macau
, the only city in China where gambling is permitted.
Macau is almost entirely dependent on the gaming sector, accounting for 55% of its GDP.
The island brings in more in a week than Las Vegas in a month.
The government deplores such dependence on the economy, which is responsible for the increase in the cost of living.
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