From items of news over the weekend it would appear that some casinos in Asia are facing hard times ahead. The Singapore government presses ahead with its plans for a casino resort development whilst seven Muslim organizations issue a joint statement requesting that the plans are scrapped. In China a crackdown on gambling at casinos just across its borders has led to some of them being forced to close. Burma, Laos and Vietnam operations have been affected.

In Singapore the Muslim organizations have described the government’s reasons for pursuing a casino project as entirely economic. Citing the usual Australian figures on the adverse effects of gambling, the group states that the negative social impact of a casino in Singapore will far outweigh the economic benefits. They go further, saying that Muslims have a moral and civil obligation to oppose the project and not to be involved either as clients or employees.

The Minister in charge of Muslim affairs in the country has acknowledged the concerns of the group of seven organizations but points out that gambling already exists in the country, and that people have the choice whether to gamble or not. The government has yet to make a final decision on allowing a casino development in Singapore but has invited potential investors to submit their ideas.

An estimated 200 casinos operate along borders with China, and Chinese officials are taking measures to prevent their citizens from gambling in them. Russia, North and South Korea, Burma, Laos, Vietnam and Mongolia, as well as Macau, have casinos that cater for Chinese gamblers who spend up to US$72 billion a year. At the moment the crackdown is not expected to have a major effect on Macau where gambling is licensed by the Chinese authorities, although government and party officials may face restrictions. Mainland illegal gambling has also been targeted recently, with the Minister for Public Security declaring that it had “undermined the socio-economic development and fundamental interests of the people.” After launching his “people’s war” against gambling, shares of listed companies on Hong Kong’s stock exchange with investments in companies with gaming-related business in Macau plummeted.

How many casinos in Burma, Laos and Vietnam have been affected by the crackdown is in dispute, but would appear to be over 80. The casinos are heavily reliant on gamblers from the People’s Republic of China for their revenues, and the border crossings are now restricted for both gamblers and employees. The Chinese authorities have also taken measures to cut telephone lines, water and power connections to the casinos, and are expected to block bank ATMs, credit card payments and other services, including to gambling websites.

The Emperor Hotel and Casino in North Korea has yet to be affected by any of these measures, as it is not possible to cut off the source of its patrons. Vietnam also poses some problems as the Vietnamese government has invested in the casinos and also provides the water and power connections, but a fall in the numbers of Chinese making the border crossing is having a detrimental effect on revenues. It has been reported that at least two casinos in Vietnam have been forced to close.

Apparently there is to be no harassment of small-stakes poker and mah-jong play. A ban on these traditional and popular forms of gambling in China would probably prove impossible to police, and so they avoid the crackdown on other forms of gambling. With the success of licensed gaming in Macau it has been suggested that China might consider passing gaming legislation for the Mainland in the future. For the moment, however, it is rigorously pursuing its policy of banning all Chinese from gambling, other than those who are permitted to go to Macau. (E-01.17.05)

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