A new law to push up the casino entry age in Macau from 18 to 21 is likely to be introduced in the middle of the year, said Dr Ambrose So, Chief Executive of SJM Holdings – Dr Stanley Ho’s casino operating company – on Friday.
The new law is unlikely to have any negative impact on gross gaming revenues. Around three quarters of GGR came from VIP gaming last year, and most VIPs are men in their 30s and above. And most mass market players appear to be in their 30s or older – possibly a function of the wage differentials between school leavers and more experienced workers.
But the proposed hike in the entry age is likely to address two important issues – political concerns in Macau and Beijing about the risks of problem gambling among the young, and a general desire to improve the staying on rate in education in Macau, thus moving Macau workers up the value chain. Currently the fact Macau permanent residents can take well paid casino dealer jobs straight from school means they have little incentive to further their qualifications. This is a problem several years down the line when those same dealer recruits find they cannot easily take executive jobs in casino managment or outside industries, without other academic or vocational qualifications.
Dr So added in his comments at an event on Friday, that he is optimistic about the development of Macau’s gaming industry this year, and said he hopes the operator’s Cotai land application can be approved as soon as possible. Currently, SJM, Wynn Macau and MGM Macau are waiting for government approval to begin building at Cotai.
Dr So told reporters that favourable factors for the gaming sector include the quantitative easing policy of the US that ‘will not tighten shortly’, the ‘very ample’ global money supply and also the positive economic expectations of Asia as a whole, TDM news, the local television news service reported.
In addition, Dr So said SJM will enhance its overall operational efficiency and hopes the SAR government can approve the company’s land development application on the Cotai Strip as soon as possible.
Non-gaming elements will be considered for introduction to the Cotai property in a bid to draw different market sources, if the application is given the green light, the CEO added.
With regard to the draft bill to raise casino entry age to 21 years old, expected to be introduced in the middle of the year, Dr So said SJM will follow the government’s instructions and reinforce random checks on people entering the casinos.
