Since taking office nearly a decade ago, China’s President Xi Jinping has implemented measures to regulate gambling in the country. These restrictions and threats have targeted various aspects of the gambling industry, including overseas casino destinations, online gambling, money transfers, and junket promoters. The impact of these restrictions will become more evident as international travel resumes after the Covid pandemic, according to industry insiders. Currently, the recovery of the Macau gambling market is slow due to the limited number of mainland visitors and proposals for increased regulation. However, experts believe that Beijing prefers Chinese citizens to gamble in Macau where their activities can be closely monitored. Overall, China’s restrictions on overseas casino operators and online gambling are seen as neutral or even positive for Macau’s mass business.
Beyond Macau, the impact of China’s restrictions on the gambling industry will vary. Casino destinations seeking success will need to establish good ties with Beijing and attract domestic players and Chinese tourists with non-gambling attractions. It may become difficult for average travelers to visit border destinations such as Myanmar or Cambodia without a clear business purpose or tourism itinerary. While the Chinese government cannot prevent individual citizens from traveling to certain destinations, it can influence tour operators’ decisions not to offer trips to those locations, as has been done in the past with South Korea and Taiwan.
In the long term, countries like Singapore may face challenges if they choose to align more closely with US efforts to contain China’s rise. Singapore has a diverse gaming market base and relies on international travelers, including those from mainland China, for a significant portion of its casino revenue. On the other hand, the Philippines has a strong domestic gaming market supported by longstanding economic growth and local players. Although Chinese tourists make up a significant portion of the Philippines’ gaming revenue, the country’s gaming industry has become more diversified in recent years, reducing the dependence on Chinese visitors.
Cambodia experienced a gaming and real estate boom fueled by Chinese customers and companies in Sihanoukville. However, the Cambodian government banned offshore online gambling at the end of 2019, leading to a decline in gaming activity in the area. NagaWorld, the country’s largest integrated resort, primarily serves Chinese residents in Phnom Penh and benefits from the deepening economic and political ties between China and Cambodia. In South Korea, the gaming market was heavily impacted in 2017 when Chinese arrivals were significantly reduced due to political tensions. South Korea’s casinos mostly require a foreign passport for admission, and the country has been shifting its focus from Japanese to Chinese players. However, new measures are expected to further decrease Chinese gamblers’ visits to the country.
In Japan, the consequences of China’s restrictions on the gaming industry remain uncertain.
