Lawrence Ho, Chairman and CEO of Melco Resorts and Entertainment, has downplayed concerns surrounding a recent crackdown on currency exchange practices in Macau, stating that the gaming industry has seen a strong start to the second half of the year.
Speaking during the company’s Q2 earnings call, Ho described the currency exchange issue as a long-standing matter that has been ongoing for over a decade, Macau Business reported.
“It is not new. It has been talked about for over a year now. It’s not a surprise to us. For us, of course, it has a bit of an impact in terms of liquidity to players,” Ho told analysts, as per the report.
Instead of linking the recent slowdown in activity to a central government crackdown on unauthorized currency exchange channels, Ho attributed it to other factors, such as the delayed start of the Chinese school holidays.
“This year, the Chinese school holiday started two weeks later. It didn’t really start until mid-July. It is also what the Euro Cup does, which happens every four years, just like the World Cup or Chinese school holidays where parents want to stay home and make sure that the kids are done with final exams before they travel,” he was quoted as saying in the report.
Macau authorities recently introduced stricter penalties for unofficial currency exchanges within casino premises, with offenders now facing up to five years in prison. Those convicted could also be banned from casinos for a period of two to 10 years.
On Tuesday, a joint operation between Macau and mainland Chinese authorities resulted in the arrest of 36 mainland residents, with around HK$1.8 million (approximately $2,31,000) in cash and gambling chips worth more than HK$600,000 ($77,000) seized from the suspects.
Despite these developments, Ho remained optimistic, saying: “So, if anything, we’re very positive and optimistic about the future. I think what we’ve seen so far in August is a more typical summer. We’re happy heading into the second half of the year. And I believe that we will continue to see growth.”
