Macau, the special administrative region of China, has passed a new law that creates greater regulatory oversight on the casino industry.
According to a report from Reuters, the changes to existing casino law are “the biggest reforms in more than two decades”. The reforms came ahead of a bidding process for licensees to conduct Las Vegas-style gambling.
“The vote came as the Chinese special administrative region carries out mass COVID-19 testing of its more than 600,000 population after dozens of locally transmitted cases were found in recent days,” Reuters reported.
Under the changes, the tax rate on casino revenue raises 1%, from 39% to 40%.
Another requirement installs a minimum cash requirement. Casino are required to posses the equivalent of $618.43 million in cash, according to the report.
Macau is the only place in China were casinos are legal. More than 90% of visitors to Macau typically come from mainland China.
The former Portuguese colony is home to six casino companies. At least 8 casinos are expected to close this year due to the economic downturn.