Editorial | Macau should move beyond its reliance on gaming revenues
- The gambling hub’s shortcomings have been exposed as the Covid-19 pandemic has emptied its gaming rooms and Beijing continues its crackdown on capital flight, money laundering and illegal cross-border betting
The shortcomings of Macau’s economy have become obvious during the almost two years of the Covid-19 pandemic. Gaming revenue, which accounts for 80 per cent of the city’s tax income, has slumped amid the zero-tolerance border restrictions that have turned the usual flood of gamblers to a trickle. The lull has given authorities reason to propose measures to improve supervision of the industry and rid it of vice, maintaining Beijing’s “one country, two systems” model while also addressing concerns about problems such as capital flight, money laundering and illegal cross-border betting. It is also an opportunity for the people of Macau to more resolutely embark on the long-sought aim of economic diversification.
Gambling is anathema to Communist Party doctrine and banned in mainland China, although allowed for state-sanctioned lotteries. It is permitted in Macau under one country, two systems and has been legal there since 1850. But events in recent months have troubled gaming industry operators and investors. With Beijing having implemented a series of anti-gambling edicts in the past year, the city’s authorities plan to overhaul gaming laws to heighten scrutiny of capital flows and daily operations ahead of the expiry of six casino group licences next June.