Macau has officially criminalized illicit money exchange practices, including those commonly known as “money exchange gangs”, which could result in a prison sentence of up to five years for individuals operating unapproved currency exchange businesses for gambling purposes.
On Thursday, the Second Standing Committee of the Macau Legislative Council terminated the discussion of the draft of the “Law to Combat Gambling Crime.”
The committee’s chairman, Chan Chak Mo, announced that the bill will be submitted for detailed discussion and voting as soon as the Legislative Council reconvenes on the 16th of this month. The proposed law is set to take effect the day after its announcement.
Chan emphasized that the legislation clearly prohibits operating currency exchange businesses for gambling purposes in casinos and their affiliated facilities without legal authorization. If law enforcement detects currency exchanges occurring within casinos, any illegal operators seeking to defend themselves will need to provide evidence that their exchanges are not intended for gambling.
In cases where illegal exchanges occur outside of casinos, such as on the streets or in shops, law enforcement can take action if they have sufficient evidence, including testimonies from those involved in the illegal exchanges. If the testimonies come from tourists, arrangements can be made for them to submit statements for future reference in criminal court, thus allowing them to avoid appearing in court during the trial.
Charges can still be brought under the offense of “illegal currency exchange.”
When questioned about informal money exchanges among friends for gambling purposes, Chan clarified that such occasional exchanges do not constitute the operation of a currency exchange business and will not be classified as a crime.
As reported last month, the brokerage CLSA has revised its forecast for Macau’s gross gaming revenue (GGR) in 2024, reflecting a 2 percent decrease.
This adjustment is due to the anticipated impacts of the ongoing crackdown on money exchange in the latter half of 2024 and a more subdued recovery driven by VIP gaming expected in 2025 and beyond.
The updated projection estimates that Macau’s GGR will grow by 24.6 percent year-on-year to MOP 228.2 billion ($28.3 billion) in 2024, down from earlier forecasts.
Undercover investigations
Chan also informed the media that the bill aims to tackle various illegal gambling activities, including illicit lucky betting, mutual betting, online gambling, illegal lotteries, unlicensed lending, coercion to gamble, and fraudulent gambling, all of which carry criminal penalties.
Illegal gambling activities often employ sophisticated anti-investigation measures and concealment tactics. The bill proposes the introduction of “undercover investigations,” which would permit night searches of residences for specific crimes from 9 pm to 7 am.
