China’s high rollers proxy betting in the Philippines

An interesting report from Bloomberg highlights a shift in high roller behavior following the Chinese Government’s clamp down on junket operators and proxy betting in neighboring Macau.

Bloomberg observes 85 percent in VIP revenues are now gleaned through betting by proxy in the Philippine casino VIP rooms, mainly conducted through junket operators. A form of gambling that is illegal in Singapore, Australia and, most recently, Macau.

Chinese speaking casino staff in select Philippine casino VIP rooms, seated at casino tables with headsets and under video surveillance, are placing bets by proxy for international clients, many of whom are reportedly from China.

“There’s been a huge upswing in players using proxy betting,” Shaun McCamley, Bangkok-based partner at gaming consultancy Global Market Advisors told Bloomberg. “A customer can sit in an office in downtown Shanghai, call associates of a casino, tell them to place bets and watch it in real time.”

Detractors have highlighted the increased risks of money laundering citing the anonymity afforded through proxy betting.

In March 2017, the U.S. State Department’s International Narcotics Control Strategy Report identified Philippines casinos, who are exempt from reporting under AML law, as being “high risk for money laundering” and “an especially critical concern.”

The full article can be read here: https://www.bloomberg.com/news/articles/2017-05-03/remote-control-bets-lift-money-laundering-risk-at-manila-casinos