Casino Companies Worried About China Law And U.S. Economy

It is one thing when the local economy in the United States crumbles, but what is equally disturbing for casino companies is a new law that will go into effect in China next month.

The Chinese government is beginning to make it as difficult as possible for gamblers to make their way from the mainland of China to Macau. They are pondering new laws that would make it even more difficult than it already is.

Beginning next month, travelers will no longer be allowed to enter Macau using a Hong Kong visa. That could be only the beginning of the restrictions that will be placed on residents of China.

The government is also contemplating restricting visas to Macau to only one every six months. The current law allows for one visit every two months.

In the United States, there is also cause for concern for casino companies. The economy does not appear to be getting any better. In fact, it actually is still worsening, and with almost $10.6 billion in loans to casino companies coming due next year, the economy could sink several of these companies.

In each case, the news is not good for an industry that has never felt the hardships that come with a struggling economy. The casino industry has always been immune to the economic problems of the country, and Macau is still thriving in the face of these new Chinese laws.

Casino companies will survive, it's just a matter of how many, and which ones, do.

August 21, 2008
Posted By April Gardner
Staff Editor, CasinoGamblingWeb.com
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