Suncity Group CEO and Director Alvin Chau has proposed the implementation of new regulations regarding the flow of capital from mainland China into Macau aimed at improving the capital quality of high-end players while better aligning the legal standpoints of the two jurisdictions.
Chau outlines his ideas which including a proposal for Chinese banks to issue mainland individuals travelers checks for use in Macau’s casinos, VIP rooms and banks.
“Based on the current system, I think regulation is needed to supervise Chinese gamblers in terms of their capital quality, as well as the capital sources of casinos and VIP rooms, while collecting data on gambling funds in Macau,” he said.
“This regulatory system can avoid authorized people or entities running casinos or VIP rooms in Macau falling into a gray area in relation to laws in mainland China.
“The lack of clarity between the two systems has made it difficult for gaming operators to comply with the laws. I hope the relevant institutions in Macau can establish a comprehensive and complete set of business strategies and financing channels which are compliant with the laws of both sides.”
On the issue of mainlanders accessing their own funds for use in Macau’s casinos, Chau suggests that, “Banks in Mainland China could issue travelers checks to mainlanders that Macau casinos, VIP rooms and banks could cash in.
“Using this approach, banks could vet the capital quality of the individuals using the checks while banks and the mainland authorities could also supervise the financial status of each gambler. This will also reduce the chances of Macau gaming entities lending huge amounts to gamblers, and reduce the risk of bad debt.”