Macau Moves to Criminalize Illegal Money Exchange Gangs in Casinos Amid Rising Crime

In a significant shift in policy, Macau’s government is poised to criminalize illegal money exchange activities within its casinos. This move recently sparked widespread debate and concern within the gaming industry. The decision comes after years of pressure from legislators and a recent surge in violent crime linked to these underground networks.

Last August 9, the Second Standing Committee of the Macau Legislative Assembly announced that the new provision to criminalize money exchange gangs will be added to the Illegal Gaming Offence bill. Legislative Assembly Chairman Chan Chak Mo disclosed that lawmakers will vote on the bill before the end of 2024.

This amendment, titled “Unlawful Exchange of Money for the Purpose of Betting,” aims to crack down on money exchange gangs operating in and around Macau’s casinos. Those caught engaging in unauthorized currency exchanges for gambling purposes could face up to five years in prison. The law also stipulates that offenders will be banned from entering any of Macau’s casinos for periods ranging from two to ten years.

Until now, Macau’s government had resisted calls to criminalize money exchange gangs, citing legal complexities. However, increasing crime rates and pressure from both mainland and local law enforcement agencies have forced a reconsideration. In June, Macau’s Ministry of Public Security launched a crackdown on illegal money exchanges, which have been linked to a range of crimes, including fraud, money laundering, theft, and even kidnapping and murder.

The financial implications of this crackdown have already been felt. Macau’s gaming industry, which is heavily reliant on high-rollers from mainland China, saw a dip in revenue during June and July, partly attributed to the government’s tougher stance on these illegal activities. Casino stocks also took a hit. Based on data from the Bloomberg Intelligence index, companies like Galaxy Entertainment Group Ltd. and Sands China Ltd. experiencing significant drops in their share prices following the announcement of the proposed amendment.

Chairman Chan Chak Mo emphasized the importance of this new law in maintaining social stability in Macau. The amendment is expected to be voted on before the end of the year, with the final provision likely to pass given the broad support it has garnered from both legislators and the public. As Macau remains the only place in China where gambling is legal, the government’s actions signal a strong commitment to curbing the illegal activities that threaten its reputation.

In the meantime, authorities continue to target the “entire industry chain” of illegal money exchanges, including increased border checks and the apprehension of unauthorized money changers. Through May of this year alone, over 1,900 individuals involved in these operations were apprehended, with nearly half of them banned from Macau’s casinos.

The decision to criminalize these activities follows a series of high-profile incidents, including a recent murder in a Cotai hotel room, where the victim was reportedly involved in illegal money exchanges. This tragic event, which saw the man fatally stabbed after winning approximately HK$2.5 million in a Macau casino, has intensified the debate over the need for stricter regulations.

Read related article: Money exchange gang member found dead after winning HK$2.5 million gambling in Macau casino