A ban on UnionPay cards in Macau casinos will not have much impact on the industry, the Hong Kong Economic Journal reported Thursday, citing gaming tycoon Lui Che-woo.
The market has exaggerated the potential damage to the gaming sector, said Lui, chairman of Galaxy Entertainment Group Ltd. (00027.HK). He said it’s too early to conclude how the new policy might play out.
However, some analysts said the move will dampen the VIP business.
The government announced the ban earlier in the week, sending casino stocks reeling in Hong Kong.
Galaxy will comply with the new regulation and keep an eye on how it will affect its business, Lui said.
He said he is confident about the long-term prospects for the gaming sector given the increased focus on the cultural and entertainment segments.
Meanwhile, the FIFA World Cup, which starts Friday in Brazil, is unlikely to steal demand from casinos because the two serve different markets, Lui was quoted as saying.
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