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Macau loan sharks face justice. - SING TAO
Loan-sharking is on the rise despite the
government's move last year to give casinos legal authority to extend credit.
Most cases go unreported, but even so, the Judiciary Police received 46
loan-sharking reports in the first three months of the year, compared with 86
all of 2004.
John Bruce, Macau general manager for corporate investigators Hill &
Associates, said the rise reflects the boom in business at the city's casinos.
``There are more customers,'' he said.
Most of the new customers are casual gamblers who generate too little betting
volume to merit a casino's investment in granting them credit. Granting credit
is a risky move, particularly in Macau, given the shortage of background
information available on bettors and the absence of any provision to offset
uncollected debts against the effective 39 percent tax imposed on gross
gambling revenue.
Loan sharks here typically accost downcast visitors leaving Macau casinos or
returning to the Hong Kong ferry terminal or border. They often accompany
borrowers back to the tables, taking a share of each winning bet placed.
Unlucky borrowers are sometimes confined until their loan is paid off as ransom
by family or friends. China Daily reported earlier this year on the case
of four people charged with killing a clinic owner in the city of Zhongshan who
failed to repay HK$1.7 million in Macau borrowings.
``Right now, the loan sharks are still doing quite well,'' said Stephen Vickers,
chief executive of investigators International Risk. ``It would be naive to
expect this activity to change in the short term.''
Police say that gambling usury is hard to prosecute. ``Out of shame or twisted
moral belief, victims seldom turn to the police unless things get out of
control, namely when violence has taken place or in the case of kidnapping,''
said a high-ranking officer.
Because of insufficient evidence and frequent no-shows by borrowers whose
testimony is required in court, fewer than half of the cases are prosecuted and
only about 10 percent of those charged are convicted. The Judiciary Police
plans to beef up its gambling crime division to address loan-sharking and
upgrade it into a department. More officers will be deployed into the city's
casinos.
Some casinos are also taking on the sharks directly using their own security
teams and surveillance equipment, but Sands Macau operations vice president
Walter Power concedes that loan-sharking ``cannot feasibly be eliminated but
can, and is, being controlled.''
Wang Wuyi, an associate economics professor at Macau Polytechnic Institute,
believes one way to combat loan-sharking is to focus on demand, rather than
supply. He suggests casinos be required to bar any customer who leaves the
premises from reentering for at least three hours. ``If people have time to
think things through, they will not so easily fall into temptation,'' Wang
said.zach.coleman@singtaonewscorp.com
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