{"id":1441575,"date":"2021-10-28T12:43:44","date_gmt":"2021-10-28T12:43:44","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=190298"},"modified":"2021-10-28T12:43:44","modified_gmt":"2021-10-28T12:43:44","slug":"dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst","status":"publish","type":"station","link":"https:\/\/platogaming.com\/plato-data\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst\/","title":{"rendered":"\u2018DCEP\u2019 Digital Yuan Could Prevent Up to $600B Capital Flight to Macau: Analyst"},"content":{"rendered":"\n<p class=\"post-content__sub-title\">Posted on: October 28, 2021, 05:43h.&nbsp;<\/p>\n<p class=\"post-content__sub-title\">Last updated on: October 28, 2021, 05:43h.<\/p>\n<div class=\"post-info-panel\">\n<div class=\"post-info-panel__author-holder js-open-close\">\n<div class=\"post-info-panel__author-logo\"><img loading=\"lazy\" decoding=\"async\" alt=\"Philip Conneller\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst.jpg\" class=\"avatar avatar-96 photo\" height=\"96\" width=\"96\"><\/div>\n<div class=\"post-info-panel__author-content\">\n<div class=\"post-info-panel__author-info\"><span class=\"post-info-panel__author-name\"><a title=\"Philip Conneller\" rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/author\/phillip-conneller\/\">Philip Conneller<\/a><\/span> <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau\/#\" class=\"post-info-panel__opener tablet-none js-opener\">Read More<\/a> <\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Uptake of China\u2019s <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/macau-regulator-denies-it-wants-dcep-cryptocurrency-casinos\/\">state-backed digital currency<\/a> in Macau would stem the flow of hundreds of billions of dollars from the Chinese mainland into the special administrative region (SAR).<\/p>\n<figure id=\"attachment_190299\" aria-describedby=\"caption-attachment-190299\" data-style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-190299 size-full lazyload\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-1.jpg\" data-src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-1.jpg\" alt=\"DCEP\" width=\"1200\" height=\"784\" data-srcset=\"https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-2.jpg 1200w, https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-1.jpg 142w, https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-3.jpg 1024w, https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-4.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\"><noscript><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-190299 size-full\" src=\"https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-2.jpg\" alt=\"DCEP\" width=\"1200\" height=\"784\" srcset=\"https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-2.jpg 1200w, https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-1.jpg 142w, https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-3.jpg 1024w, https:\/\/platogaming.com\/wp-content\/uploads\/2021\/10\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau-analyst-4.jpg 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\"><\/p>\n<p><\/noscript><figcaption id=\"caption-attachment-190299\" class=\"text-description\">iGamix analyst Ben Lee, pictured during an appearance on Macau TV network TDM. (Image: TDM\/YouTube)<\/figcaption><\/figure>\n<p>That\u2019s according to iGamix gaming analyst Ben Lee who estimated up to $600 billion is taken out of the Chinese economy by Macau-bound gamblers each year.<\/p>\n<p>As reported by <em>Macau Business<\/em>, Lee was addressing a conference organized by Britcham Macao, a British business association. The analyst said the SAR\u2019s casino industry reported gross gaming revenues of US$45 billion in 2013, its best year. But this was just the casinos\u2019 hold rate, the amount retained after winnings are returned to patrons.<\/p>\n<p>Based on that figure, Lee estimated that gamblers would have, in fact, brought the equivalent of around US135 billion into the SAR that year. And if side-betting was factored into the equation, that number could rise to US$600 billion.<\/p>\n<blockquote class=\"main-blockquote\" readability=\"31\">\n<p><strong>That is why China has been very unhappy with our gaming industry,\u201d Lee added.<\/strong><\/p>\n<\/blockquote>\n<p>China\u2019s Ministry of Public Security said last year that about RMB1 trillion (US$145.5 billion) flows out of the mainland into gambling activities every year. This was a \u201cthreat to the country\u2019s economy and national security,\u201d it warned.<\/p>\n<div class=\"callout\" readability=\"20\">\n<p>Hugo Luz dos Santos, an expert on Macau gaming law, explained in <em>Asian Gaming Lawyer<\/em> that side-bets are an \u201cagreement between the player placing the bets [in the casino] and a third party who promises to cover an additional illegal parallel bet.\u201d<\/p>\n<p>\u201cWhat appears to be a simple bet placed at a certain casino table might represent hidden supplementary wagers,\u201d he wrote. \u201cHence, a single dollar lost or won in a bet at a casino table may well correspond to two, five, ten or even hundred tax-free dollars under a parallel bet agreed with a third party.\u201d<\/p>\n<\/div>\n<h2><strong>Corruption Crackdown<\/strong><\/h2>\n<p>Soon after Macau posted its record results in 2013, Beijing kickstarted a \u201ccorruption crackdown,\u201d targeting corrupt officials it believed were transporting their ill-gotten gains into the SAR with the help of the junket industry.<\/p>\n<p>This was in defiance of the mainland\u2019s strict rules on the movement of capital. Currently mainlanders are permitted to bring the equivalent of around&nbsp;US$3,000 into Macau, which can seriously cramp a high roller\u2019s style.<\/p>\n<p>The crackdown scared away the high rollers who had previously accounted for 60 percent of Macau\u2019s gaming revenues, sending the market spiraling into an economic slump that lasted for almost two years.<\/p>\n<h2><strong>Cashless Macau?<\/strong><\/h2>\n<p>But Beijing may have found a better way to exert financial control on the SAR. Central government <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/china-digital-currency-will-help-fight-online-gambling-peoples-bank\/\">announced<\/a> the creation of the digital yuan, or DCEP, in November 2019, the first ever state-backed cryptocurrency. It was cautiously rolled out in April 2020 and is still in trial process.<\/p>\n<p>The goal is a cashless society. And if that is ultimately adopted in Macau, it would hit the VIP sector hard and all but destroy the junket model.<\/p>\n<blockquote class=\"main-blockquote\" readability=\"33\">\n<p><strong>Suddenly there would be an intrinsic built-in function that enables authorities to monitor, control and filter theoretically any and all transactions,\u201d said Lee.<\/strong><\/p>\n<\/blockquote>\n<p>But it would not be all bad for the casino industry. The mass-market segment would likely go through the roof because a cashless economy would eliminate capital flight and thus the need for monetary controls, upping travelers\u2019 spending power.<\/p>\n<p>Lee said he knew of at least one Macau casino operator that had conducted an organizational-wide study into the potential impact of a future without cash.<\/p>\n<div class=\"wp_rp_wrap wp_rp_plain\" id=\"wp_rp_first\">\n<div class=\"wp_rp_content\">\n<h3 class=\"related_post_title\">Related News Articles<\/h3>\n<\/div>\n<\/div>\n<p> <a rel=\"noopener\" target=\"_blank\" href=\"https:\/\/www.casino.org\/news\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau\/\">Source: https:\/\/www.casino.org\/news\/dcep-digital-yuan-could-prevent-up-to-600b-capital-flight-to-macau\/<\/a><\/p>\n","protected":false},"author":1,"featured_media":1441576,"template":"","meta":{"_eb_attr":"","type":"","auto_type":false,"post":"","stream":"","stream_url":"","waveform_data":[],"duration":0,"bpm":0,"downloadable":false,"download_url":"","purchase_title":"","purchase_url":"","post-count-all":0,"like_count":0,"download_count":0,"editor_note":"","copyright":"","captions":[]},"genre":[102],"artist":[106],"mood":[],"activity":[],"station_tag":[3785,5764,5207,6295,5380,3620,6296,5556,5448,3705,6297,6298,5806,3625,3788,6299,3739,3790,3792,5386,5387,5388,5808,5809,3709,5659,6300,3801,6301,5663,6053,6054,6172,3806,3638,5607,5404,6302,3640,6303,5464,177,6304,6305,5408,5565,3643,5291,6306,3715,5983,5469,3646,6008,3652,3654,5420,6011,6307,5539,5225,3885,3758,5545,5627,6308,5435,5439,5440,5719,6309,3677,3679,6187,5441,6310,6311,3690,6312,6313,6314,6315,6316,3852,6317,5279,3703,6318],"_links":{"self":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station\/1441575"}],"collection":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station"}],"about":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/types\/station"}],"author":[{"embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/media\/1441576"}],"wp:attachment":[{"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/media?parent=1441575"}],"wp:term":[{"taxonomy":"genre","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/genre?post=1441575"},{"taxonomy":"artist","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/artist?post=1441575"},{"taxonomy":"mood","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/mood?post=1441575"},{"taxonomy":"activity","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/activity?post=1441575"},{"taxonomy":"station_tag","embeddable":true,"href":"https:\/\/platogaming.com\/wp-json\/wp\/v2\/station_tag?post=1441575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}