Macao Police Shut Down Illegal Currency Exchange That Catered to Gamblers

Macao police officers say they have arrested a Mainland Chinese man who ran an illegal currency exchange for gamblers.

The Public Security Police Department said a patrol in the New Port Area discovered two men exchanging cash near a casino on the afternoon of January 6. The suspect initially denied he was making illegal currency exchanges, the Japanese-language media outlet Macau Shiumbum reported.

But the man’s suspected “customer” told officers that he had approached him on the street with an offer to exchange money at a favorable rate. The “customer” told officers they had agreed to exchange 6,000 Hong Kong dollars ($770) for 5,400 yuan ($774).

The suspect denied this claim. But when police checked his belongings, they found 19,400 Hong Kong dollars (almost $2,490) in cash.

Police have since charged the man with illegal currency exchange and handed the case over to public prosecutors.

Macao Police: Cracking Down on Illegal Currency Exchanges Near Casinos

The media outlet wrote that Macao police have reported “frequent cases” of illegal currency exchangers and loan sharks operating near casinos. They also say that gambling-related robberies and kidnappings have seen an upturn.

The authorities responded with a new gambling act that came into effect on October 29, 2024. The act strengthens the penalties for illegal currency exchange and illegal lending for the purpose of gambling. Police say they are using their new powers to step up crackdowns on illegal operators.

The New Port Area was once famous for its satellite casinos, smaller gaming establishments run by concessionaires and typically promoted by third parties.

However, these satellite venues were ordered to close down at the end of last year in accordance with a phasing-out law introduced in 2022.

Amid worries about mass redundancies, reports in Macao claimed some of the peninsula’s biggest casinos will reassign thousands of satellite casino workers to the concessionaires’ core casinos.

Satellite Shut-Down

Casinos said most of the satellite casinos’ gambling staff would be reassigned to similar roles in bigger casinos. However, operators reportedly conceded that some cost-saving efforts may eventually result in job cuts.

Shares in Macao casino operators took a tumble at the end of last year as financial analysts predicted a slowdown in growth.

Morgan Stanley has adjusted its performance expectations for Macao operators downward, citing that major firms such as MGM China and Wynn Macau are expected to face higher royalty payments to their US-based parent companies in 2026.

The financial giant lowered its forecast for MGM China’s EBITDA (earnings before interest, tax, depreciation, and amortization) to 7% lower than its previous prediction.