Macau: The fight against illegal money changers in casinos

Illegal money changers in Macau will face several years in prison if they are caught. They also face a ban of up to ten years from all casinos in Macau. But how does the business model with the illegal money changers work and why is the government now taking such decisive action against them?

Macau is a special administrative region of the People's Republic of China and is known worldwide for its numerous casinos. We reported back in January that the last turnover in Macau casinos was 20 billion euros in 2023. However, there is clearly a growing problem with illegal money changers in Macau. For this reason, a new law has now been announced so that illegal money changers can expect a prison sentence of up to five years in future.

How do illegal money changers work in Macau casinos?

Primarily criminal gangs operate in the casinos in Macau to change money for players at unfavourable exchange rates. The illegal money changers are therefore in direct competition with the official exchange offices, but offer significantly worse conditions. Furthermore, in the past it has often happened that dubious money changers have also offered players loans at usurious interest rates in the casino.

The severe prison sentence of up to five years is intended to deter money changers. While a first-time offence may result in a prison sentence of at least one month, repeat offences or more serious offences may result in a prison sentence of up to five years. Furthermore, money changers without a licence face a ban of between two and ten years from all casinos in Macau.

It is important to note that the new law will only penalise the money changers and not the players who use the services. The law may still be passed this year so that it can come into force by early 2025 at the latest. So far, the legal situation is such that money changers in casinos are not liable to prosecution, as there is no law that criminalises the activity.

In May last year, we at GambleJoe reported on a mass brawl in a casino in Macau.

Conclusion

Illegal money changing is expected to be a criminal offence in Macau from the beginning of 2025. In the worst case, offenders will face a prison sentence of up to five years. It remains to be seen whether the new law will have a negative impact on the gambling industry in Macau.

Image source: https://pixabay.com/de/photos/macau-china-architektur-tourismus-4769469/