Morgan Stanley says that China’s increased regulatory oversight on overseas gaming will not have a deep impact on Macau’s gaming sector.<\/p>\n\n\n\n\n\n\n\n
Macau.- While China continues its fight against cross-border gambling<\/a> and increases its regulatory oversight<\/strong>, Morgan Stanley doesn’t expect that to mean anything new for gaming in Macau.<\/p>\n\n\n\n Referring to the restart of applications for the Individual Visit Scheme (IVS)<\/a> for Macau, analysts said: \u201cWe think this suggests China will continue to allow gambling in Macau <\/strong>despite potential regulatory headwinds.”<\/p>\n\n\n\n They added: \u201cWe remain constructive in the hope of the border opening and eventual extension of licences, both of which we expect in second-half 2021.\u201d<\/p>\n\n\n\n China also announced a \u201cCommon Prosperity\u201d Plan that aims to reduce income inequality in-country. Morgan Stanley said that could benefit the base and middle mass slot segment<\/strong>\u00a0as it suggests more wealth redistribution policies in the future.<\/p>\n\n\n\n Analysts also said they expect\u00a0Macau to extend its six existing gaming concessions<\/strong>. <\/p>\n\n\n\n Lawrence Ho<\/a>, Melco\u2019s chairman and CEO, has also said he expects no surprises regarding Macau\u2019s concession renewal process despite a regulatory crackdown in China.<\/p>\n\n\n\n During the presentation of\u00a0Melco\u2019s financial results<\/a>\u00a0for the second quarter of the year, Ho said he expects an extension of the current gaming concessions\u00a0despite increasing regulatory controls in China<\/strong>.<\/p>\n\n\n\n He said: \u201cAll the concessionaires will be working closely with the government<\/strong> and I do not expect any surprises.\u201d<\/p>\n\n\n\n His statement follows a similar opinion from Sands China CEO<\/a> Wilfred Wong Ying Wai<\/strong>, who said an extension \u201cis the only alternative at this point.\u201d<\/p>\n\n\n\n According to Wong Ying Wai, as Macau\u2019s legislative elections will be held on September 12<\/strong>, the relevant public consultation<\/a> and legal amendments to the gaming law will only happen after that, leaving no time to prepare for a retendering in time for when licences expire next year.<\/p>\n\n\n\n