With U.S./China relations bumping along near rock bottom, Beijing’s plans to introduce the digital yuan looks set to create more waves, which may be a concern for the Macau U.S. operators, says a leading gaming consultant.

As speculation about the introduction of the digital yuan in Macau increases, the focus is beginning to switch away from the negative impact on the junket industry and VIPs to the immense potential an e-currency may offer for the mass market.

The Victorian royal commission into Crown’s suitability to hold a license rages on. Its latest findings has revealed the operator’s efforts to prevent problem gambling has been lacking.

As speculation about the introduction of the digital yuan in Macau increases, the focus is beginning to switch away from the negative impact on the junket industry and VIPs to the immense potential an e-currency may offer for the mass market. 

Hong Kong is in talks with China to expand cross-border testing of the digital yuan, which will ease cross border payments with the Mainland.

Ben Lee, managing partner of iGamiX Management & Consulting speaks with Asia Gaming Brief Managing Editor Sharon Singleton about how China’s new criminal law may affect Macau and its junkets. He also talks about the increasing chatter about the introduction of a digital yuan in Macau, which could trigger explosive growth in casino revenue.

The use of the digital yuan as a valid currency in Mainland China has been seen as a potential "game-changer" for Macau by overhauling its cross-border payment systems, which would significantly reduce the need for junkets, according to industry observers. 

Macau’s junket industry is set for change. The introduction of a digital, centralized, trackable and seizable currency in Macau will have particularly negative implications for the junkets, which have facilitated cross border movement of funds for high rollers for decades. The junket industry has already been suffering from clampdowns and policy changes - causing VIP GGR to reach only 20 percent of pre-pandemic levels in the first quarter. Whilst in Japan, the Nagasaki IR licensing bid has just gained a new political patron, the brother of former Prime Minister Taro Aso. Whilst in Yokohama, a second candidate with an anti-casino policy platform has just entered the Yokohama mayoral race, recently announced to be scheduled for August 22.

Macau’s government finally confirmed on Tuesday that the adoption of a digital yuan is on the table in what’s likely to be a gamechanger for the industry and its junket operators.

The acceleration of the use of the digital yuan as a valid currency in Mainland China could be a potential “game-changer” for Macau by overhauling entire payment systems, significantly reducing the need for junkets, according to the Macau Gaming Research Association.