Over 60% of Gambling-Related Crimes in Macau Linked to Unlawful Currency Exchange Activities

Macau has reported 567 crimes related to gaming in the first quarter of 2025, marking an increase of 61.5% compared to the previous year. This surge in crime rates has been linked by Macau authorities to recent legislative changes that criminalized illegal money exchange operations, effective from October last year.

### Macau Gaming Crimes – A Breakdown

During the first quarter, authorities reported 152 cases of fraud, 132 incidents involving unlicensed currency exchanges, and 51 cases related to loan sharking. Unlawful exchange practices account for over 60% of gaming-related crime incidents.

Macau revised its law on Combating Gambling Crimes to target and dismantle the region’s illicit underground money networks. The implementation included harsher penalties and expanded police powers, potentially leading to up to five years in prison and a possible 10-year prohibition from entering any of Macau’s casinos for offenders.

The recent legislation is part of a broader crackdown by Beijing on illicit money movements, with law enforcement officers from both Macau and Guangdong working in coordination. However, despite the intent to reduce crime levels, the first quarter results show a coincidental increase in gaming-related offenses.

Notably, this spike in financial crimes occurs as the number of casinos in Macau has decreased, dropping from 40 in 2019 to 30 today. Furthermore, the number of suspicious transactions reported last year reached a record 3,837, the highest tally since the establishment of the Financial Intelligence Office in 2006.

Macau’s April casino revenue figures showed a 1.7% year-over-year increase from the same month last year. The strategic shift away from VIP visitors, following caps on overseas fund withdrawals of only CNY 100,000 ($14,000) per year, has led to an increase in unlicensed money changers operating in the region.

The high-profile murder of a money changer last year in Wynn Palace has intensified concerns about the prevalence of these activities in Macau. While VIP numbers continue to decline, Macau’s efforts to attract mass-casino tourism have resulted in an 11.1% overall rise in arrivals in the first quarter alone. However, the recent influx of more casino-goers has undoubtedly begun to strain law enforcement efforts.

### Thailand Monitoring Macau as Casino Legalization Looms

Thailand, whose Prime Minister is pushing for legislation to legalize casino resorts, is now considering restricting gambling to ‘foreigner-only’ venues. Observers in countries eyeing casino gaming expansions are eager to see how Macau handles the rise in crime. Industry experts, including Sonny Shiu-Hing Lo and Quan Fang, warn that casinos are inherently connected to crimes such as money laundering, loan sharking, and prostitution. Prompt action by Macau authorities to address rising crime levels is crucial to minimizing the potential impact on visitor numbers to its resorts.