Macau: Virtual currency may benefit gaming market, analysts say

Analysts believe the issuance of virtual currency could have a long-term positive for the local gaming market.

Macau.- The brokerage Sanford C. Bernstein has said that the possibility of using a virtual currency could benefit Macau’s gaming market.

The gaming market currently operates using Hong Kong dollars, so mainland Chinese visitors have to convert their renminbis if they want to gamble unless they already have access to Hong Kong dollars. 

The Macau Gaming Research Association has previously noted the implementation of a virtual currency could mark a step-change for the local gaming market as customers could buy chips instantly using RMB without the need to convert to HKD.

Analysts at Sanford C. Bernstein stated: “The cleaning up of Macau’s money flows, easier access to RMB transactions in the city, and disintermediation of junkets would be a positive driver for continued growth in stable mass and premium mass in Macau.”

The introduction of a virtual currency could have a serious impact on junket operators as it may render them unnecessary for the VIP sector.

The introduction of a digital currency could serve as another move against money laundering and tax evasion as Chinese authorities build their blacklist of overseas gambling destinations to which cross-border transfers are controlled.

Bernstein’s report added: “While some VIPs will surely go away for fear of being identified as big players, for mass and premium customers, the convenience of digital forex transaction and smooth purchase experience may encourage more visitations.”