{"id":19705,"date":"2017-05-09T06:22:02","date_gmt":"2017-05-09T14:22:02","guid":{"rendered":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/?p=19705"},"modified":"2017-05-09T06:22:02","modified_gmt":"2017-05-09T14:22:02","slug":"new-crackdown-in-macao-death-in-downtown","status":"publish","type":"post","link":"https:\/\/www.lasvegasadvisor.com\/stiffs-and-georges\/new-crackdown-in-macao-death-in-downtown\/","title":{"rendered":"New crackdown in Macao; Death in Downtown"},"content":{"rendered":"

That chill wind you feel blowing through Macao<\/strong> is the local\u00a0government’s trepidation about the $1 billion-plus in cash withdrawals that are being made from Macanese ATMs.\u00a0\u201cThe amounts are eye-watering \u2013 HK$10 billion-a-month is a conservative estimate. The \"\"banks have been told to make sure every ATM is monitored on a 24-7 basis so as soon as cash levels get low, a team is ready to fill the machine back up, on a 24-7 basis,\u201d said a South China Morning Post<\/em> source. Of course, whenever a policy change like this occurs, it stokes fears of currency flight or outright money laundering — the kind of thing that will bring a crackdown from Beijing<\/strong> faster than you can say “pataca.” As JP Morgan<\/strong>\u00a0analyst Joseph Greff<\/strong> wrote, “It is conceivable to believe the governments in both Macau and China<\/strong> may want to clamp down on this, given the broader efforts on curbing capital outflows.” Already there have been some gaudy prosecutions, including one involving a couple that had 402 cash cards to swindle to the system to the tune of $15 million.<\/p>\n

Already the amount of cash that can be taken out of a UnionPay<\/strong> machine in a single transaction has been halved, but this clearly has not \"\"solved the problem. (The number of ATMs per capita is 254 in Macao compared to 49 in Hong Kong<\/strong>.) Grumbled an unnamed financial services consultant,\u00a0\u201cI wonder why the monetary authority thinks it is so important to keep the taps open so this flood can come out, rather than focusing on stemming it?” According to Greff, the new generation of machines will incorporate biometric recognition software “and will require mainland holders of UnionPay ATM cards to present their China ID card and face to verify a cardholder\u2019s identity before dispensing cash.”<\/p>\n

He continued, “The actual impact on demand doesn\u2019t necessarily have to be very meaningful since there are many other ways\u2013at least for
\nnow\u2013that can help players\/junkets to get cash in Macau, like \"\"pawnshops for example. The bigger impact may be on player psychology, as some players\/junkets may interpret the government as sending a message about capital outflows as well as players\u2019 reluctance to use ATM cards given increased ID checks.”<\/p>\n

Added Deutsche Bank<\/strong> analyst Carlo Santarelli<\/strong>, “While ATM’s are generally a source of cash for mass customers, we find it difficult to dispute that a portion of premium mass and VIP play is also sourced \"\"from ATM withdrawals, whether directly or indirectly. If one were to assume only HK$10 bn per month in withdrawals, it implies roughly $500 per monthly visitor. We believe this statistic indicates that the ATM usage extends beyond the ordinary mass customer.” While this kind of government monitoring might seem inconceivable to Americans, it is merely the latest instance of Macao turning the stove burners up and down as it attempts to control the casino-based economy.<\/p>\n

* If we’re skeptics about the Las Vegas Raiders<\/strong>, the NHL<\/strong>‘s Golden Knights<\/strong> have made believers of us. As CMO Nehme E. Abouzeid<\/strong> says, \u201cWe feel that population-wise and income-wise, the city can support two teams. We\u2019re going to be the homegrown team. A transplanted team is a different mentality.\u201d Not only have the Knights sold 13,000 season tickets already, their approach has been to home-grow a fan base, not try to import one from outside. “Vegas is a very livable city, and that\u2019s really not reported nationally,” Abouzeid says. “Yes, a lot of our jobs are tied to the hospitality industry, but there\u2019s also a lot of entrepreneurship, a lot of doctors, a lot of dentists, a lot of financial advisers, a lot of insurance agents.\u201d It sounds like the Knights, unlike the Raiders, have done their homework<\/a> and aren’t relying on pie-in-the-sky numbers to sell their product.<\/p>\n