The Malaysian Online Casino Industry is preparing for the worse as the US-China trade war continues to take a toll on Macau’s gross gaming revenue (GGR).
Experts have started questioning whether the US-based gambling operators will be able to continue business as usual in the Chinese-controlled territory with the relation between the two countries not showing signs of improvement.
The gambling operators are also already facing the heat of the ongoing trade war and the prolonged pro-democracy protests in neighbouring Hong Kong.
Moreover, following China’s change in policy which calls for making Macau a family holiday destination, holding on to the casino gambling licenses in Macau is becoming increasingly capital intensive with diminishing returns.
Liang Ming, a researcher at the Chinese Academy of International Trade and Economic Cooperation, an affiliated institution under the Ministry of Commerce (MOC), has shared his insight.
has said that it is very unlikely that US gambling operators would have to pack up their businesses in Macau.
However, he did not rule out the possibility of Chinese-funded companies taking over American businesses in Macau in an extreme scenario.
He was speaking to reporters at “Malaysia’s Economy Forum 2019” at University of Malaya (UM).
He said that “if they would choose to leave [Macau], we could look for other entities to run their businesses, and this would possibly be just a matter of a change in the structure of shares.
In this situation, Macau companies or mainland Chinese-funded companies could take over and run these venues [casinos].”
Three of Macau’s six casino gambling operators in Macau are from the US: Sands, Wynn, and MGM. SJM, Galaxy, and Melco are Macau or Hong Kong companies.
The Next Step For Malaysia Online Casinos
Liang has also provided insights for the industry in the country. He advised that online casinos in Malaysia should to stay neutral during the trade war.
The neutrality would be similar to Switzerland’s neutral stance during World War II. This means that the country would be able to maintain a professional relationship between the US and China.
“As tensions are rising between the two superpower countries, Malaysia going for a neutral stance would be allowing the whole world to see that they are not showing supports to any countries,” he explained.
If either country notices that Malaysia does not take anyone’s side, then the relationship would be maintained and business dealings will continue.
Meanwhile, the Malaysian Online Casino Industry is leaning on neutrality. The same goes for the Malaysian government, as well as the whole gambling industry in the country.
A spokesperson of the Malaysian Online Casino Industry mentioned that it would be too risky if they were to show support at one side rather the other.
He explained that should a wrong turn unfold, then the whole industry may face a huge downfall with no way of rising up again.
“Yes, it would be too risky. Even if we do rise up again, it would not be the same ever again as the whole world would already see us as a supporter to one side,” he said.
These consequences would lead to permanently losing other professional business deals with other countries.
Even the Malaysian government agrees not to meddle on anyone’s side and conduct their parliament as usual.