China restricts gaming machines

New regulations in China forbid gaming machines to utilise gambling content, starting January 1 2020, banning slots and maximised results, among other things.

China.- The Chinese Ministry of Culture and Tourism has issued a new regulation that has a deep impact on gambling. The government is pushing against the industry and decided to restrict its possibilities there.

China has forbidden gaming machines to have gambling content, starting January 1 2020, Xinhua News Agency reported. The government targets functions like maximised returns and also slot machines.

The authorities also warned about the underaged in China using gaming machines.

Moreover, it stated the regulation includes electronic gambling devices that operate in casinos and other commercial venues and offer contents improper for people under 18 years old to use independently.

Macau casino market

The Macanese region is one of the best performing segments in the world, but won’t grow very much next year. According to Fitch Ratings Inc, the Macau casino market will have only “low single-digit growth” in 2020.

Comments by Colin Mansfield, Fitch Ratings’ associate director, corporate ratings North America forecast a regular performance in the near future. 

“(Fitch is) basically expecting the VIP business to remain flat from where we are today. With some potential downside risk if things escalate a little bit further… [in] the U.S.-China trade war,” Mr Mansfield said on Macau casino market.

He also compared the segment’s growth rate with China’s GDP improvement: “Our economists have a 5.7% growth rate for that segment for 2020,” he assured. “So that comes out to be about low single-digit growth for Macau in 2020 in our forecast.”