The world’s largest gambling market Macau could one day get serious competition from Hainan Island.
China is reportedly drafting a proposal to legalise gambling on the island, which is already a major domestic tourist hotspot.
According to sources quoted by Bloomberg, a government steering groups is looking at allowing online gaming, a lottery or sports betting in Hainan, which is known as China’s Hawaii for its sub-tropical climate and beaches.
The possible gambling proposal is part of a wide-ranging plan to boost tourism in Hainan including easing visa requirements and construction of a fourth airport.
Gambling is illegal in China and only allowed in Macau, which is a so-called semi-autonomous Special Administrative Region much like Hong Kong.
Even lottery tickets are technically banned.
A fledgling gambling industry in Hainan could directly threaten the US$33 billion casino industry in Macau.
It also has investors worried as major Macau casino stocks plunged on the news, even though there has been no official confirmation that the plan is even being considered yet.
Sands China Ltd, MGM China Holdings and Wynn Macau Ltd all fell about 6%.
