Meltdown mayhem for Macau?

Macau, oft called the Asian Vegas, has seen its share of increased jobs, money and prosperity in the region. However the southern hemisphere’s success story is now quaking as the Macau government announces changes that are less than favourable to the future of its gaming industry.

The government has undertaken a review of proposed expansion in the industry, which has come as rather a shock to the global gambling industry as a whole, as well as to the local stock market and casinos, as the industry has been viewed as a success story for Macau until now.

Being the only Chinese city where casinos are licensed and legal has put Macau on the map as a successful hub, capable of attracting international visitors and attention. Additionally it has made Macau very popular with Chinese businessmen and other Asian residents, as gambling is heavily restricted elsewhere in Asia.

Macau has also demonstrated resilience to the global economic downturn. How much of that can be attributed to the casinos is unknown, but an educated guess would point to the fact that they help the overall economy by attracting in visitors and money and by sustaining other businesses located there.

However some casino license holders appear to agree, at least in part, with the government that the industry ‘should not expand indefinitely’. Whilst a straightforward plan of action might be to monitor developments along the way, it seems that the regional government are intimating legislative changes instead, that will affect all casinos in the region.

These proposed changes will limit slot machines and change the age restriction on workers and players, raising this to 21 years. Potentially, the number of tables in a casino may be restricted too. And the government’s announcement of its proposed changes saw many stocks fall sharply.