Last month, I did a blog entry on how Macau had now overtaken Las Vegas as the world's biggest gaming spot.
But that has come at a price for the Chinese government. Reuters reports that the big concern for the Chinese, along with US diplomats and casino executives is the level of corruption in Macau. Even by Chinese standards, it's high.
The Reuters investigation found that mainland China has restricted visas to Macau in response to the growing power of criminal groups, everyone knows as triads. Also, US casino executives have gone to US diplomats to talk about the pervasive influence of the triads in junkets that bring in the high rollers. One of the most prominent companies in Macau, Las Vegas Sands is under investigation for kick backs. The FBI is now investigating.
Corruption is a huge issue in China and authorities seem to be cracking down. The question is whether the Chinese government will tolerate it and turn a blind eye. Corrupt as it may be, Macau is a cash cow for China.