China could approve new casinos

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China regulators could install a new gaming hub in the country.

China.- Macau could no longer have the monopoly of casino industry in China, as authorities are evaluating to legalise gaming operations in Hainan. Casino resorts are only legal in the Chinese city of Macau so far, but the island of Hainan could be the next hub for international investors that seek to expand their businesses.

The news agency Bloomberg has shared the information last week, suggesting that Chinese authorities are in favour of strengthening the local casino market with new licenses. After Bloomberg’s report, Macau’s casino stocks tumbled during the weekend, with Sands China and MGM Holdings dropping 6 percent and Wynn Macau falling 6.7 per cent.

“Based on the news report, the preliminary proposals are in very early stages and have not been fully rationalized. The proposal seems to be focused on potential legalization of online gaming, lottery or sports betting in Hainan. There is no indication that these preliminary proposals are pushing for the legalization of casino gambling. The proposals are part of a broad series of plans looking at ways to increase foreign tourism,” stated Bernstein on an official report released last Friday.

“Legalisation of casinos in Hainan would not be a key driver for foreign tourism, in our view,” continued Bernstein. “While any casino legalization on Hainan would create problems for Macau, we do not see casino development in China as a real threat to Macau now or in the foreseeable future.”

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