In Macau, a slowing economy together with the prospects of a heightened trade war involving the United States and China could reportedly lead to significant challenges for the 3 foreign gambling firms that operate casinos in the former Portuguese enclave.
Expert analysis:
Based on Friday reports from GGRAsia along with also the Macau News Agency, this is the view contained in a market assessment regarding the upcoming twelve months printed late last week by expert political and corporate threat consultancy Steve Vickers and Associates Limited.
American firms in danger:
The Hong Kong-headquartered agency reportedly used its 2019 Asia Risk Assessment Report to warn that the continuing economic tensions between the planet’s two largest economies can lead officials in Macau to operate towards ‘diluting’ the considerable community presence of the American casino industry. The assessment purportedly explained this could encompass moves to promote local firms to take over or buy huge stakes in existing concessionaires that are majority-owned by American investors.
Republican ties:
Of those six firms licensed to operate casinos in Macau, the analysis reportedly stated three are American-owned encompassing the MGM China Holdings Limited subsidiary of Las Vegas-based MGM Resorts International as well as the local Sands China Limited and Wynn Macau Limited subordinates of Las Vegas Sands Corporation and Wynn Resorts Limited respectively. The examination purportedly declared some local government officials are not pleased with ‘the connections between gaming tycoons along with the Republican Party’, that will be affiliated with contentious United States President Donald Trump, also could ‘simply refuse to give a new right to fresh concessionaires’ if their current licenses expire in 2022 and 2022.
Chief Executive succession:
The investigation from Steve Vickers and Associates Limited additionally reportedly predicted that such moves could be more likely if Ho Iat Seng replaces the outgoing Fernando Chui Sai On as Chief Executive for Macau at the end of the year. The study purportedly detailed that Ho was supporting a recent effort that emanates Portuguese jurists from the 33-member Legislative Assembly together with the legislator also thought to be keen to institute a ‘Sinofication of this gaming sector’ coverage.
Reportedly read the analysis from Steve Vickers and Associates Limited…
“Ho, if he become Chief Executive, could espouse such a move. Present thinking is that the authorities will want to expand the [2020-expiring] concessions before 2022, in order to deal with them all at once. Such a transfer would buy time. Small else is attest. ”
Fiscal slow-down:
Concerning the economy, the company ’s exploration reportedly also proclaimed that neighborhood overall gross domestic product (GDP) growth reach just at 6.8% annually due to softer domestic requirement in China although Beijing apparently remains dedicated to a diversification policy that could see Macau continue to move away from an over-reliance on gambling.
‘Cash cow’ viewpoint:
However, the study from Steve Vickers and Associates Limited reportedly furthermore declared that Macau’s authorities also does ‘not need to destabilize’ the casino business and believes the sector for a ‘veritable cash cow’ this previous year posted a 14% increase year-on-year in annual gross gaming revenues to $37.6 billion.
Reportedly read the analysis from Steve Vickers and Associates Limited…
“The Macau authorities will consequently appraise both the economy and geopolitics when taking any decision. ”
Macau cracking down on Illegal currency exchange activities
