Singapore casinos, including Resorts World Sentosa and Marina Sands Bay, believe China’s new and harsh enforcement on international gambling will severely hurt their casino operations. The Chinese crackdown may have stopped Chinese people from going on gambling trips but it hasn’t stopped betting online on sites like cookiecasino.bet.
China President Xi Jinping has instructed law enforcement agencies across China to do everything in their power to stop mainlanders from traveling overseas to gamble. China is going to new lengths by threatening foreigners who attempt to lure Chinese citizens on international trips with brutal penalties such as 10-year prison sentences and severe fines.
President Xi wants to keep as much wealth inside China as possible. He views gambling as a major way in which money is leaking out of the nation, hurting its economic goals.
Singapore casinos are already bracing for the worst as they expect many of their VIP clients who live in China to be scared away by the government’s tough talk.
China Is Not Bluffing About Stopping Gambling
China is dedicated to stopping over $100 billion from leaving the nation via gambling routes. China has proudly proclaimed they have charged over 30,000 people for international gambling offenses and expect many more to be charged.
China will not budge on its anti-gambling stance. Throughout China, gambling is illegal apart from the government-run lottery. To get their gambling fixes, rich Chinese gamblers flock to Hong Kong, Singapore, and Macau.
Investment analysts are concerned that these most recent Chinese crackdowns will cause a permanent decline in revenue for Singapore casinos which could take years to recover from. Singapore casinos rely on as much as 20% of their revenue from Chinese clients. If this money disappears, it will be hard to operate successfully.
In classic Communist fashion, the Chinese government is offering exemption from prosecution to Chinese gamblers who have been charged if they are willing to help shutdown these international gambling rings. The glory days of Chinese gamblers swooping into Singapore on private jets ready to lose millions may well be over.
Singapore Casinos Suffer Worst Year
Based on the most recent annual report of Resorts World Sentosa and Marina Sands Bay, the two major casinos in Singapore, 2020 has been their worst year on record. The pandemic and the subsequent forced border closures have led to a 90% decline in earnings, and casino revenue is down 60%.
The Singapore government has offered a helping hand to the gambling sector by handing out stimulus checks to the casinos. However, this has only slightly eased the pain, as they described the year as devastating.
Currently, the casino landscape in Singapore is a duopoly between Resorts World Sentosa and Marina Bay Sands. Despite the poor prospect of attracting wealthy Chinese gamblers, both gambling operators have pledged a combined $3 billion to invest in their Singapore operations. They both believe the Singapore market is strong enough without Chinese high rollers to generate large profits from their world-class integrated resorts.