With Macau casinos trying to get new licenses, Chinese regulators can use that power to offer demo functions for the digital yuan.
Current concessions in the $37 billion sector are poised to expire, necessitating the first renewal of local casino licenses in two decades.
China’s regulators are anticipated to take advantage of the situation by pressuring operators to allow the usage of the digital yuan in their casinos as an experiment.
Other options include having government representatives oversee daily activities, according to a government consultation paper.
Ideal spot
Because Macau is not subject to Chinese capital regulations, authorities see it as an ideal location to further test the technology. This would also help China’s digital payment supervision.
Although existing enterprises like Wynn Macau and Galaxy Entertainment were initially concerned that such scrutiny would scare away big spenders, the re-licensing process has made them eager to please.
According to Bernstein analysts, high rollers no longer dominate the standings, despite losing an average of nearly $27,000 every table visit.
According to Breakingviews, which cites official figures, the mass market currently accounts for two-thirds of gaming revenue or nearly 90% of earnings.
Effort to combat corruption
Aside from payment supervision, Chinese authorities are promoting the use of digital payments in casinos as a way to prevent corruption.
Alvin Chau, the head of the Suncity junket, was detained last month for his alleged involvement in an illegal cross-border gambling and money laundering organization.
Suncity made roughly $8 billion in gaming revenue prior to COVID-19 by facilitating bets for affluent MVPs.
Chinese central bank governor Yi Gang indicated in November that the digital yuan may aid in the battle against financial crime, such as money laundering, by resolving complex cross-border payments issues.
China was said to be considering opening a digital yuan-based exchange in Beijing the same month.
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