Regulatory practices and technology in Macau casinos: Insights from a grounded theory study

This study investigates the regulatory-operational dynamics of Macau casinos using a constructivist grounded theory approach. In-depth interviews were conducted with 25 participants from industry stakeholder groups. In light of the new gaming laws, the study outlines specific regulatory mechanisms, including premium player identification, strengthened operational procedures, expanded audit and reporting requirements, and enhanced on-site inspections. The grounded theory analysis identifies four emerging industry themes that capture the impact of the new casino regulatory system: regulatory institutionalization, de-junketization, functional fragmentation, and technological applications. The study also examines stakeholder perceptions of the new casino regulatory system, with casino and expert groups viewing the reforms as necessary, while junket participants perceive them as restrictive. Based on these findings, the study proposes a conceptual model structured around regulatory functions, compliance, and improvement. The resulting framework reflects the characteristics of Macau’s gaming industry and may provide analytical relevance and transferable considerations for comparative research in other gaming jurisdictions.