Macau Elects Former Judge Wary of Casinos as Its New Leader

(Bloomberg) — Former Macau judge Sam Hou Fai, who has warned against the outsize influence of the gambling industry in the city, was elected as its new leader by a 400-member committee.

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Sam, 62, the ex-president of Macau’s Court of Final Appeal, was the sole candidate in the election for chief executive. He received 394 of 398 votes cast on Sunday, with the remaining four being blank.

Sam’s victory raises questions about the outlook for the world’s biggest casino market. In August, he warned against the dominant role the gaming centers play in the local economy, saying that “for a period of time, the tourism and gaming industry developed in a disorderly manner and expanded wildly.”

Having one industry dominate the city “is not beneficial for Macau’s long-term development,” he said. The growth of casinos had strained resources like manpower and even narrowed the career choices for young people, Sam said, and called for diversifying away from the industry.

The former judge’s comments coincided with Beijing launching its latest crackdown on money laundering and capital outflows, a move targeting Macau’s money-exchanging activities.

Over the past few years, the city has imprisoned top junket operators, who brought in high rollers and provided them with credit. Macau has also introduced regulations restricting the agents’ activities, resulting in the collapse of the VIP gambling that once contributed half of the city’s casino revenue.

Macau’s outgoing chief executive, Ho Iat Seng, had said he wouldn’t seek another term for health reasons.

Sam becomes the first person born outside Macau to lead the city. He’s a native of the neighboring Chinese province of Guangdong and moved to Macau in the 1980s when the city was administered by Portugal.

He studied at Peking University and University of Coimbra in Portugal, before becoming a judge in Macau in 1997.

–With assistance from Krystal Chia.