The move by central government in China to control the expansion of casino gaming in Macau has come at an opportune moment. Just days before Labour Day the announcement of a freeze on casino development, the fixing of junket operators commission rates and proposed control of table numbers could go someway towards appeasing local anger.

Last year there were Labour Day protests against illegal labour and government corruption, and at the end of May China brought in visa restrictions for Macau in a bid to stem the flow of illegal labour in the gaming and construction industries and curb gambling by officials. In 2006 May Day was also used to vent local frustration over economic changes brought by the casinos – for many local people a falling quality of life with rocketing living expenses and traffic chaos.

In the first quarter of 2008 Macau’s 29 casinos generated US$3.73 billion, up 62% year-on-year. With two resort casinos due to open in Singapore and perhaps in Taiwan before long, China’s central government may be concerned about over supply affecting visitor numbers to Macau. There is also the slowing global economy to consider and a possible credit bubble waiting to burst in the VIP gaming rooms. Results last September suggested that money was being moved around the casinos and not coming from new customers.

Macau’s Chief Executive Ho Hau Wah last week promised that no new gaming concession or sub-concession would be granted in the near future nor approval given for any land for the building of new casinos. In Ho also said that none of the reclaimed lands approved in the future by the central government will be used for casino projects, and the government will require all of the slot machine halls to be moved out of the city's residential districts. (E-04.28.08)

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