The Macau government has given approval to the SAR’s six concessionaires to continue conducting money exchange business at their casinos and at their own risk.
In an update published in the Official Gazette on Monday, the Chief Executive of Macau said that MGM Grand Paradise S.A., Galaxy Casino S.A., The Venetian Macau S.A., Melco Resorts (Macau) S.A., Wynn Resorts (Macau) S.A. and SJM Resorts S.A. are allowed to carry out money exchange business as they have done for many years.
However, they are only allowed to conduct the business of “buying and selling foreign legal tender bills and coins” and “buying traveler’s checks” at exchange counters.
The government granted such authorization to its six concessionaires to conduct money exchange business in its casinos each year under their concession contracts.
By contrast, Macau’s Legislative Assembly revealed last week it is looking to criminalize illegal money exchange and in particular involvement in money exchange gangs, with a proposed law to see offenders sentenced to up to five years in prison.
Analysts at Citibank recently pointed out that the criminalization of illegal money-exchange activities in Macau’s casinos and integrated resorts may have a negative impact on investor sentiment in the short term and further affect gaming stocks that have already been suppressed post-COVID, although they do not expect such headwinds to last long-term.
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