The Ministry of Culture and Tourism in China has created a blacklist of destinations for overseas tourists that they feel are disrupting the outbound tourism of the nation. Such destinations are opening casinos that target individuals from mainland China.

A statement issued this week revealed that the new system was created in conjunction with other government departments. The system will place restrictions on travel regarding citizens of China who are going to cities and specific spots on the blacklist.

Who’s on The List?

According to the Ministry, the locations on the list are considered to be endangering the personal safety and property safety of citizens in China. It is unclear as to what areas are listed within the new system. But, analysts of JP Morgan bank feel that it is the gaming destinations in Southeast Asia that are the target.

The Philippines, Cambodia, and Vietnam are most likely on the list and analysts feel that Australia might also be a target. China has been targeting Cambodia and the Philippines for quite some time. Just last year, Cambodia agreed to shut down its online gambling industry, but the Philippines rejected a similar action towards its POGOs.

Analyst Report 

DS Kim, Jeremy An, and Derek Choi of JP Morgan stated that the blacklist announcement seems like a continuation of the effort to stop illegal overseas gambling. It is also a move to stop cross-border capital flow from the industry.

According to the analysts, right now it is uncertain as to how the government will act based on the blacklist and what exactly it means to be a city or location on the list. For the analysts, they feel it means that capital flow through underground agents and banks along with the promotion of overseas markets by junkets will be scrutinized heavily.

The analysts also pointed out that Macau will most likely not be impacted negatively from the blacklist. The city is not considered an overseas market for gambling. They may benefit from the change as it could drive the demand to the region.