With gambling responsible for 1 trillion yuan ($147 billion) leaving China’s economy, the clampdown on Macau was only a matter of time. In 2020, Xi embarked on a push for “common prosperity”-a vague policymaking principle of egalitarianism that has been used to rein in how the country’s wealthiest make and spend their money. Read More: As Casino Revenues Plummet, What’s Next for Tiny Macau? His administration launched a strict anti-corruption campaign that dissuaded casino profligates.
Macau’s junket model was left somewhat untouched until late 2012, when Xi Jinping became president of China. Gambling has been officially illegal in the mainland since 1949 but not in Macau, a fact that has helped shape the latter’s cultural identity while also complicating the relationship it has with Beijing. Junket operators can handle everything from their client’s luxury accommodation and travel to even offering loans to play with. The city’s VIP gamers contribute more than 43% of the sector’s earnings, in large part through junket operators-middlemen who facilitate gambling for wealthy, Chinese punters. Read More: Can Asia’s Gambling Industry Continue to Thrive?īut the region’s revenues have notoriously relied on China’s high-rolling betters, which, in some cases, include state officials.
