Macao Chief Executive Edmund Ho yesterday predicted a decline in revenue from the gaming industry and said the SAR government will take over the moribund casinos.

Speaking at a press conference after delivering his policy address for 2009, Ho said he expected monthly gross revenue from Macao's gaming industry to drop to 7 billion patacas from the current 8 billion patacas.

"We cannot expect 8 billion patacas (a month) when the economy is going down. Revenue of 7 billion patacas is very good indeed," Ho said. "It is not realistic to demand an 8 billion patacas revenue when the whole world is tightening its belt."

Macao's gaming industry is hit by the financial tsunami and mainland visa restriction policy.

Casino revenue dropped by 10.03 percent to 25.98 billion patacas in the third quarter, down from 28.88 billion patacas in the previous quarter, the city's Gaming Inspection and Coordination Bureau announced earlier.

Ho said the SAR will review the visa restriction policy with Guangdong authorities next year, but added that immediate change in the curbs is unnecessary as it helps the city in adjusting its gaming industry development.

Ho expected that gaming corporations will brace for a tough period next year, which will result in staff lay-off.

Galaxy laid off 270 local casino staff, mostly dealers, in July.

"We cannot guarantee that all people can keep their jobs," Ho said. "But we have told the gaming corporations to first target non-local staff to streamline their operations."

Ho also pledged that the government will develop social enterprises to absorb the laid-off. They can return to the gaming industry when the economy recovers, he added.

Besides, the SAR government will adopt measures to help the industry, but it has no plans to lower the gaming tax system, which requires casino to pay 35 percent of their revenues to the government.

The government will take over the casinos if they are on the brink of collapse, he said.

"We will not let any gaming corporations close their business as they wish. The government will intervene and discuss with the debtors. The facilities inside the casino, including the gambling table, cannot be removed. We will protect the reasonable interest of the debtors while continuing the business," he said.

He also allayed fears that the casino industry will collapse as the gambling license is still in limited number and worth investment.

(HK Edition 11/12/2008 page2)