The Chinese government is continuing to fight corruption targeting VIP gamblers who spend money without clarifying Macau casinos and their income sources. The crackdown, which began in early 2014, continues until 2015, and the Chinese government has confirmed that it will not give up.
Strict campaigns have led to VIPs and high-stakes gamblers leaving Macau, costing casinos a significant amount of revenue estimated at about $100 billion. VIP gamblers in Macau are now moving abroad to places like the Philippines, Cambodia and Vietnam, where gambling is less regulated.
Li Gang, director of the Beijing Liaison Office in Macau, recently announced that China is specially monitoring officials traveling to Macau and visiting casinos. The officials are being investigated by authorities, and Li Kang warned them to stay away from casinos in Macau and accept the results.
Macau casino officials have been specifically instructed to monitor all visitors entering and leaving the casino and to verify identification for customers requesting VIP casino tables. Chinese officials and VIP gamblers often visit Macau casinos and are used to being immersed in the VIP treat that suits them.
Recent reports say officials and VIP gamblers are now working with junket operators to sideline authorities and use proxy bets. This method allows VIP gamblers to play in casinos through agents sitting on the mainland and receiving instructions over the phone. The gang confirmed that the authorities were aware of such practices and will prosecute anyone who indulges in them. According to a recent report by Morgan Stanley, "Win [Macao] allowed proxy bets to mitigate the decline."
Gang also called for an agreement with Beijing to allow Macau to prosecute corrupt officials fleeing mainland China. Hong Kong currently has such an agreement with mainland China, and Gang wants the Macau government to sign a similar agreement. In a statement, Gang said, "If any criminal flees to Macau with money, Macau authorities can repatriate him to jointly crack down on crime."
