Macau’s casino stocks tumbled overnight following revelations that the Macau government would introduce new facial recognition technology in ATMs across the city to strengthen controls over the use of mainland China-issued bank cards.
The government announced on Monday that it would roll our “know your customer” technology” in Macau’s ATMs, which would see holders of UnionPay cards issued by mainland banks have to scan their mainland identity card and undergo a facial recognition check. The rollout of new ATMs would include those in or near casinos.
In response, Macau’s operators all saw their stock prices take a hit overnight, with Melco Resorts the hardest hit, down 3.94% to US$21.46 – although the ATM situation coincided with Melco’s announcement that it would buy back the remainder of Crown Resort’s 11.2% stake.
Wynn Resorts saw its shares fall 1.59% to US$120.20 while MGM Resorts fell 1.39% to US$30.42.
Closer to home, Galaxy Entertainment Group lost 1.36% of its share value to HK$39.95, Sands China fell 1.15% to HK$34.40 and SJM fell 0.71% to HK$7.03.
The Macau government signalled its intent to strengthen monitoring of ATMs following recent reports that more than HK$10 billion was being withdrawn from the city’s 1,300 ATMs each month. That’s despite new measures implemented last year halving the amount that could be withdrawn in one transaction to HK$5,000.
“The Government attaches great importance to, and has expended great effort in, optimizing Macau’s anti-money laundering measures and its standards for countering the financing of terrorism,” it said. “The Government has been closely cooperating with the Asia/Pacific Group on Money Laundering (APG) and working in line with the anti-money laundering standards set out by the Financial Action Task Force, an intergovernmental body that sets standards and promotes regulatory and operational measures for combatting money laundering.
“The new measure regarding ATMs will help Macau further fulfil – as an APG member – its responsibilities in combatting money laundering. In particular, the Government’s effort further protects the legitimate rights of Macau’s financial institutions and of holders of mainland-issued bank cards.”
