The Chinese government has proposed to amend the law to adjust the penalties for establishing casinos and to increase the number of crimes committed by offshore casino personnel who organize and recruit Chinese citizens to gamble abroad. A gaming broker in Macau said that the VIP lounge has been transformed and the impact is minimal.
The amendment to China’s criminal law intends to further adjust the penalties for establishing casinos, while adding the crime of organizing and recruiting Chinese nationals for cross-border gambling by offshore casino personnel. The company’s main business is to provide a wide range of products and services to the public. The amendment to the law will slow down the recovery of gambling revenue to a certain extent. Minimum Requirements for Compliance.
Minimum Requirements for Compliance
The government’s position is clear that the organization and recruitment of citizens to gamble abroad, as well as people gambling abroad through websites in the country, and the outflow of funds are seriously damaging to the country’s image, especially when it comes to economic security, the wording is severe. This signal reflects the state’s tolerance of the above-mentioned behaviors and is now paving the way for legal amendments. It is expected that the state will further increase its efforts to curb capital outflow and crack down on organized offshore gambling.
The amendment to the law is not good news for the industry, but the minimum requirement for intermediaries and syndicates is to operate in compliance with the law. Business must be done, but only within the scope of compliance. Although there are difficulties, he thinks the most difficult times are over. He does not dare to say that it will not affect the business at all, but it is relatively mild, emphasizing that the business model of the agency group (VIP lounge) is a service promotion rather than a touting promotion, that is, to provide services to those in need, and if the services are good, they will help more, and will not recruit customers at will. Profit stacking code to avoid risk.
Yielding stacked codes to hedge risk
He said that the casual recruitment of their own shock, leaving aside the criminal liability, the customer can not afford to play, whether there is money to return is also a consideration. It is difficult to comment on the way of recruiting customers by stacking codes. The company’s main goal is to provide a platform for the public to learn more about the company’s products and services. But in any case, all parties will have to adapt to the law in the future.
He said there was a time when VIP rooms used to do basic assessment and recruitment of gamblers through mainland intermediaries, but as the bad debts became more serious, this was no longer done. If the information is asymmetrical and the customer’s ability to borrow is overestimated, the VIP lounge ends up being the victim if the customer is unable to repay. The lounges are now not lending easily and have transformed into a platform service, giving profits to the pile of codes, which bear the risk of borrowing. As a platform provider, it only receives a small profit to pass on the risk. Conservative strategy affects recovery.
Conservative strategy affects recovery
As for the impact of the Mainland’s law amendment on gambling revenue, Lam said he foresees that gambling revenue will not be able to rise significantly, and that the restrictions on various barriers after the opening of the Individual Visit Scheme will boost gambling revenue for basic customers, i.e. those who like to gamble, with very few fresh faces in VIP halls. However, in the future, even if the industry wishes to stimulate business, it may change its aggressive strategy to a conservative one due to concerns that it may violate the law, which will affect the recovery of gambling revenue to a certain extent.
In addition, the VIP room capital flow is tight, he said, the shares have been returned, the withdrawal has been withdrawn, still normal operation of the VIP room, there is no capital problem. Now the VIP room strategy hold profits to protect the Thai, to consolidate a good foundation.
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