<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5552453eeab8ea4c192ccbf8-1200-924/galaxy-casino-in-macau.jpg" border="0" alt="Galaxy Casino in Macau"><p class="source"><span>REUTERS/Bobby Yip</span></p><p class="caption">The original Galaxy Macau.</p></img></div><p></p></div></div>Galaxy Entertainment, the $158 billion casino firm, will open two highly anticipated properties in Macau in two weeks, and it could be an utter disaster.</p><p>That's because the government has yet to allocate gaming tables to the $3 billion projects.</p><p>The opening date is May 27th, the government confirmed that it received table requests from Galaxy for both the Galaxy Macau phase 2 and the Broadway Macau on April 15th.</p><p>So yeah, that's cutting it a little close to the wire.</p><p>"Government officials commented recently that they have not decided on the number of gaming tables to be allocated the projects," UBS analysts wrote in a recent note. <strong>"We think the market expects around 150 new tables for Galaxy and an allocation below that could be negative to sentiment.</strong> Recently there has been busy activity on the existing Galaxy Macau main floor in re-positioning tables, slots and ETGs which could be in preparation for the re-allocation of some tables to phase 2 from phase 1. We also expect a few junkets (less than 3-4) to have the appetite to open new VIP rooms in Galaxy phase 2."</p><p>The  Chinese government has been cracking down on casinos in the world's largest gambling hub since the summer of 2014. It started by going after the junkets - companies that provide funding for high-rolling gamblers - as part of President Xi's wide ranging anti-corruption drive.</p><p>Since then retail gamblers have been scared away by visa restrictions, debit card monitoring, and a smoking ban. The government also put a cap on visitors from mainland China, destroying the idea that more projects might mean a higher volume of retail gamblers to make up for the loss of the VIP crowd.</p><p>As a result, Macau gaming revenue has broken in half, and casino stocks like Wynn Resorts, Las Vegas Sands and others have broken right along with it. For its part, Galaxy's stock is down 37% over the last year.</p><p>According to analysts at Wells Fargo, Macau's gaming revenue could decline up to 36% from May of last year. The bank foresees Galaxy's stock down 20% compared to this time last year as well.</p><p>Galaxy's probably waiting by the phone on this one.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/bethenny-frankel-huge-business-mistake-lost-millions-real-housewives-2015-5">How one simple mistake cost 'Real Housewives' superstar Bethenny Frankel millions</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="treGpzdDrlNasuxsLTPw1AeeqbEP3zlz" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'treGpzdDrlNasuxsLTPw1AeeqbEP3zlz',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Two massive casinos are about to open in Macau and it could be an unmitigated disaster

<p><em><span style="font-weight: 400;">Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. Business Insider may receive a commission from The Points Guy Affiliate Network.</span></em></p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="https://thepointsguy.com/card-details/the-american-express-gold-card/?utm_campaign=bi_er_101018_amex-gold-review&amp;utm_source=referral" target="_blank" rel="noopener"><img src="https://static-ssl.businessinsider.com/image/5bbe0f14a4cb62375a6f8593-1821/1-3.jpg" border="0" alt="AmEx Gold" data-mce-source="AmEx" /></a><p class="source"><span>AmEx</span></p></div><p></p></div></div></p><ul class="summary-list"><li><strong>The<a href="https://thepointsguy.com/card-details/the-american-express-gold-card/?utm_campaign=bi_er_101018_amex-gold-review&amp;utm_source=referral" target="_blank" rel="noopener"> American Express® Gold Card</a>, which was reintroduced last fall, is a fantastic spending tool for anyone who enjoys dining out at US restaurants or anyone who regularly shops for groceries at US supermarkets. </strong></li><li><strong>When you combine the card's welcome bonus, rewards program, statement credits, and other benefits, this card is a clear winner.</strong></li><li><strong>While the card has an annual fee of $250, the rewards and benefits may be worth much more than that - depending on your shopping and spending habits.</strong></li><li><strong>Here's what you need to know to decide of the AmEx Gold is the credit card for you in 2019.</strong></li></ul><p><span style="font-weight: 400;">While its big brother, the <a href="https://thepointsguy.com/card-details/the-platinum-card-from-american-express/?utm_campaign=bi_er_101018_amex-gold-review&amp;utm_source=referral" target="_blank" rel="noopener">Platinum Card® from American Express</a>, often gets all the hype for premium travel rewards, AmEx recently released the refreshed <a href="https://thepointsguy.com/card-details/the-american-express-gold-card/?utm_campaign=bi_er_101018_amex-gold-review&amp;utm_source=referral" target="_blank" rel="noopener">American Express Gold Card</a>, and it comes with some great new rewards that make this one worth considering.</span></p><p><span style="font-weight: 400;">The brand-new American Express Gold comes in a sleek metallic finish. It offers up to 4x points per dollar on popular categories, a 35,000-point welcome bonus, and an annual $100 airline fee credit. The card does charge a $250 annual fee, but depending on your spending and shopping habits, this card may be well worth the cost.</span></p><h2><strong>American Express Gold rewards</strong></h2><p><span style="font-weight: 400;">The new American Express Gold credit card offers a great rewards program. Depending on your spending habits, it may even be more valuable to you than the ultra-premium American Express Platinum.</span></p><p><span style="font-weight: 400;">The card offers 4x points per dollar spent at US restaurants, 4x points at US supermarkets (up to $25,000 in purchases per year; then 1x), and 3x points on flights booked directly at airlines or AmEx Travel. If food and dining is a major portion of your budget, which is common because everyone has to eat, you can get massive bonus rewards for each burrito lunch, sushi dinner, or cooked at home dinner.</span></p><p><span style="font-weight: 400;">New cardholders also earn 35,000 bonus points after spending $2,000 on purchases in the first three months after opening a new account. That bonus alone is worth enough for a domestic round-trip flight.</span></p><p><span style="font-weight: 400;"><a href="https://www.businessinsider.com/american-express-membership-rewards-best-ways-to-use-points-2018-9" target="_blank" rel="noopener">Membership Rewards is one of the top two travel rewards programs</a> for credit card holders, <a href="https://www.businessinsider.com/reasons-to-use-chase-ultimate-rewards-2018-9" target="_blank" rel="noopener">only competing with Chase's Ultimate Rewards</a> for the top slot. If you want free travel but don't want to pay the big $550 annual fee for AmEx Platinum, this card is an excellent alternative.</span></p><h2><strong>American Express Gold benefits</strong></h2><p><span style="font-weight: 400;">This card's value doesn't stop at the Membership Rewards points you earn, which are often worth around 2 cents each. The card, <a href="https://www.businessinsider.com/best-american-express-cards" target="_blank" rel="noopener">like other premium AmEx cards</a>, is loaded with benefits useful for travel and shopping. Some even put a few dollars back in your pocket depending on where you spend.</span></p><p><span style="font-weight: 400;">AmEx Gold comes with two credit opportunities for dining and travel. Get up to $10 per month back in statement credits, worth $120 per year, when dining with GrubHub, Seamless, The Cheesecake Factory, Ruth's Chris Steak House, and some Shake Shack locations. This ongoing benefit is separate from the 20% (max $100) statement credit for new cardholders.</span></p><p><span style="font-weight: 400;">You also get $100 in statement credits for airline fees and incidentals like baggage fees and in-flight purchases. If you take full advantage of both the $10 dining fee and $100 annual travel fee credit, your annual fee goes down to an effective $50 per year. That's a bargain for what you get in return if you take full advantage.</span></p><p><span style="font-weight: 400;">The card also includes baggage insurance, rental car insurance, roadside assistance (like AAA), a global assistance hotline, and perks at certain hotels when booked through American Express. Surprisingly, this card does not include a full travel insurance or trip interruption benefit.</span></p><p><span style="font-weight: 400;">When shopping, this card offers purchase protection, return protection, and an automatic extended warranty. This is better than what the average card offers and makes big purchases a lot less stressful. You can skip the expensive added protections offered by some retailers when you make the purchase with the Gold card.</span></p><p><span style="font-weight: 400;">Cardholders also get a complimentary membership to Shoprunner. This service gives you free two-day shipping at a wide range of online retailers. <a href="https://www.businessinsider.com/what-is-included-in-amazon-prime-membership-best-benefits-2018-4" target="_blank" rel="noopener">It works like Amazon Prime in a lot of ways</a>, but outside of Amazon.</span></p><p><span style="font-weight: 400;">There are some additional benefits for shopping, travel, and entertainment common to AmEx cards. They are not as popular or exciting as some other benefits, but ticket presales and reserved seating for AmEx cardholders at some events comes in handy to some sports fans or cardholders on the way to see a favorite band live.</span></p><h2><a href="https://thepointsguy.com/card-details/the-american-express-gold-card/?utm_campaign=bi_er_101018_amex-gold-review&amp;utm_source=referral" target="_blank" rel="noopener"><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5bbe0f4cac0a633a690a46e8-1821/1-2.jpg" border="0" alt="AmEx Gold" data-mce-source="AmEx" /><p class="source"><span>AmEx</span></p></div><p></p></div></div></strong></a></h2><h2><strong>American Express Gold costs and fees</strong></h2><p><span style="font-weight: 400;">Now for the less fun part: fees. This card isn't free. It charges a $250 annual fee. But as we already established, between benefits and rewards, it is easy to earn that back and more in value if you use the card regularly.</span></p><p><span style="font-weight: 400;">The card charges up to $38 per occurrence for late and returned payments. Just pay on time and make sure you have enough cash in the bank when paying to avoid these costs.</span></p><p><span style="font-weight: 400;">There is no foreign transaction fee, so you can use the card anywhere in the world that AmEx is accepted without paying the typical 3% extra most cards charge. Keep in mind that American Express is not as widely accepted outside the United States as Visa or Mastercard, so you might need an additional card as a backup when traveling.</span></p><p><span style="font-weight: 400;">The card charges 20.24% variable rate APR when paying over time and 29.99% penalty APR if you miss a payment. Rates can change at any time with market interest rates. Pay in full by the due date each month to avoid interest charges.</span></p><h2><strong>The bottom line: Should you get the new American Express Gold card?</strong></h2><p><span style="font-weight: 400;">The new American Express Gold card is pretty exciting for millennials and empty nesters who enjoy dining out at US restaurants or anyone who regularly dines out or spends big on groceries at US supermarkets. When you combine the welcome bonus, rewards program, statement credits, and other benefits, this card is a clear winner.</span></p><p><span style="font-weight: 400;">If you want even more premium travel benefits, you may prefer the American Express Platinum. If the $250 annual fee is too much for you to handle, <a href="https://www.businessinsider.com/chase-sapphire-preferred-card-review" target="_blank" rel="noopener">consider the $95-a-year Chase Sapphire Preferred as a good alternative</a>.</span></p><p><span style="font-weight: 400;">If you read through this card's benefits and like what it has to offer, you won't go wrong with the new and improved American Express Gold card.</span></p><h3><a href="https://thepointsguy.com/card-details/the-american-express-gold-card/?utm_campaign=bi_er_101018_amex-gold-review&amp;utm_source=referral" target="_blank" rel="noopener"><span>Click here to learn more about the American Express Gold Card from Insider Picks' partner: The Points Guy.</span></a></h3><p class="tagline">Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team. If you have questions or feedback, we'd love to hear from you. Email us at yourmoney@businessinsider.com.</p>

We break down whether the new AmEx Gold card is worth the $250 annual fee

<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Flickr / José Manuel Ríos Valiente" title_caption="The change should mean less disruption for the consumer. " class="zoomin" href="https://static-ssl.businessinsider.com/image/5601bb7f69beddb8043a07db-960/man-looking-in-wallet-4.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/5601bb7f69beddb8043a07db-912-684/man-looking-in-wallet-4.jpg" border="0" alt="Man Looking in Wallet" /></a><p class="source"><span><a href="https://www.flickr.com/photos/josemanuelerre/6084776479/in/photolist-agG54i-botkQT-8rayGR-5XSTsh-pDs7QN-asLAZu-aoR9Ec-aoTTuA-9f6EcL-a6v8jh-aoR9Wn-575k2L-puJpM8-o2hYkb-ptWrkN-oiKt3q-8Da1uw-9XAKd4-9XDCfU-fP8iSN-cDoYn5-gtSm76-buGYXX-98Pzyj-64qYpL-mQEm5-7Wdu8u-bzGTye-bLnJsD-bHTLVa-a2inKM-a2maTY-donaoo-5L14hK-czsRHQ-9kXf1z-9XBnkX-j2LFTA-j2GEn6-bvGorQ--foKhpY-66Gbg2-9EnUAt-bCEsGE-btCtN8-6c1t64-9iKjiL-4zonm6-2akLJh">Flickr / José Manuel Ríos Valiente</a></span></p><p class="caption">The change should mean less disruption for the consumer. </p></div><p></p></div></div>Come October 1, <a href="http://www.businessinsider.com/what-you-should-know-about-emv-cards-2015-9">the way we pay with credit and debit cards will start to change</a>.</p><p>Rather than swiping our plastic like we've been doing for years, we'll start "dipping" our cards into a terminal slot. A microchip, found on the front of these new cards, will be read instead of the traditional magnetic stripes found on the back of cards.</p><p>This new technology, called EMV, <a href="http://www.businessinsider.com/why-the-us-is-adopting-emv-technology-2015-9">aims to combat fraud and improve security</a>.</p><p>While the shift to card "dipping" may be uncomfortable initially, it ultimately aims to better your financial security.</p><p>"Whenever change is happening, it's natural to ask, 'What does this mean for me?'" MasterCard product expert Carolyn Balfany tells Business Insider. "What it should mean is less disruption. It should mean that your information will be stolen much less frequently, and you won't have to get new cards as often."</p><p>Chip technology should result in less <a href="http://www.businessinsider.com/the-credit-cards-that-will-take-over-the-us-this-year-are-less-prone-to-theft-2015-2">credit card skimming</a> - a fraudster's go-to method for stealing card information. The vulnerable magnetic stripes on traditional cards contain unchanging data, so if a skimmer manages to steal that data, they can copy it onto a counterfeit card and make purchases.</p><p>The microchips embedded on the new EMV cards are much more secure. The chip creates a unique, one-time code every time a transaction is made - because the card's information changes following each purchase, data skimmed from a thief is useless.</p><p><span style="line-height: 1.5em;">This is not an end-all solution to fraud. The new technology only affects in-store purchases, meaning fraud may become more concentrated in online spaces.</span></p><p>In fact, when European countries started implementing EMV technology several decades ago, fraud activity migrated to the United States, Balfany tells us, as it was one of the only countries still using the less-secure "magstripe" cards.</p><p>While EMV implementation is a baby step forward, it's not a comprehensive solution to fraud.</p><p><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5602ad2d6da811a55bcc119e-1200-600/credit-card-30.jpg" border="0" alt="credit card"><p class="source"><span>Joe Raedle/Getty Images</span></p><p class="caption">The new chip cards are most effective for in-store transactions.</p></img></div><p></p></div></div></strong><span style="line-height: 1.5em;">The major card networks - Visa, Discover, MasterCard, and American Express - are front-running this transition by introducing a liability shift. This shift will not affect the customer, but will affect the merchants and banks.</span></p><p>Currently, if you fall victim to credit card fraud, your issuing bank will pick up the tab and insure you.</p><p>Starting October 1, the responsibility will shift to the merchants - <em>if</em> they're still using the old "swipe and sign" system and don't accept a chip-enabled card. <span style="line-height: 1.5em;">It works the other way around as well. If the merchant has the new terminal but the bank hasn't started using a chip card, the bank will be responsible.</span></p><p>If both parties have upgraded to the new technology, the issuing bank will insure you like it does today.</p><p>This means there's incentive for merchants to start updating their in-store terminals to be EMV-compliant, and for banks to start issuing new, chip-enabled cards.</p><p>And at the end of the day, consumers shouldn't stress over the nationwide shift we're about to experience, Balfany emphasizes: "It's a change, but I would remind consumers that they are never liable for fraudulent transactions."</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/adrenaline-junkies-scale-building-russia-daredevil-parkour-2015-8">This is nuts: Watch Russian adrenaline junkies perform daring tricks atop a 40-story building</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="x0N25jdzpb3V7gX_1K_tT9WsoWwH77wR" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'x0N25jdzpb3V7gX_1K_tT9WsoWwH77wR',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The way you use your credit card will start to change October 1 - here's how it will make your money safer

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559fd9bd6bb3f7fe28f7425b-1200-924/macau-casino-china.jpg" border="0" alt="macau casino china"><p class="source"><span>Reuters</span></p><p class="caption">An attendant (R) dressed as the Chinese God of Wealth stands in front of slot machines at the Global Gaming Expo (G2E) Asia in Macau, China May 19, 2015.</p></img></div><p></p></div></div>We're starting to hear talk around Wall Street - people are saying the worst is over in Macau.</p><p>"With the central and Macau governments essentially putting a 'policy floor' on the industry revenue, we believe that the worst is over for both GGR [Gross Gaming Revenue] and share prices," Credit Suisse analysts wrote in a recent note.</p><p>"We expect gradual sequential revenue recovery into a seasonally stronger 2H."</p><p>Good luck with that, because a lot of the things holding Macau back - President Xi's anti-corruption drive, a sluggish Chinese economy, and oversupply - are still very real problems for the industry.</p><p>And those aren't even everything.</p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5565fba1eab8eac80ae30457-654-809/screenshot 2015-05-27 13.14.52.png" border="0" alt="Macau"><p class="source"><span>Reuters</span></p></img></div><p></p></div></div>For about a year gaming revenue in the world's largest gambling center has completely collapsed. There's no other way to put it.</p><p>Last year, 16% of the junket companies that financed high rollers shut down. Chinese President Xi Jinping's anti-corruption drive scared away rich and middle class gamblers alike. </p><p>Two years ago it would have been unthinkable for the government to try to implement a smoking ban, cap the number of mainland visitors to the island, or arrest a member of casino scion Stanley Ho's family with 99 prostitutes in one of Stanley Ho's casinos.</p><p>But all of that has happened, and month after month since last summer gambling revenue has fallen between 30% and 50% from the same time the year before.</p><p>Credit Suisse, however, sees a silver lining. It believes that the government is going to start supporting the industry again instead of actively destroying it.</p><p>Of course, their note doesn't describe what the government's supportive policies are or could be, per se.</p><p>It just seems that the bank is optimistic about a recent relaxation of travel visas to the island.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/559fd5ef6bb3f73314f7425e-1113-584/macau timeline.png" border="0" alt="macau timeline"><p class="source"><span>Credit Suisse</span></p></img></div><p></p></div></div></p><p>Thing is, there's still tons of casino supply in Macau. <a href="http://www.businessinsider.com/galaxy-macau-openings-could-be-awful-2015-5">Two massive multi-billion dollar casino</a><a href="http://www.businessinsider.com/galaxy-macau-openings-could-be-awful-2015-5">s</a> just <a href="http://www.businessinsider.com/3-billion-casino-rises-as-macaus-gaming-industry-plummets-2015-6">opened in June.</a> Plus, there are some nasty policies coming down the pipeline that will likely put off would-be gamblers.</p><p>For one thing, a smoking ban at casinos is working its way through Macau's legislature. According to reports, Macau's Secretary for Social Affairs and Culture Alexis Tam said on Thursday that the only way to get rid of second-hand smoke is to completely ban smoking. Proponents of the ban admit that it will hurt casino revenues, but again, they're still proponents. If the ban passes, it will go into effect in 2016.</p><p>Additionally, as Wells Fargo's Cameron McKnight wrote in a recent note, Xi's anti-corruption drive is ramping up again, not slowing down.</p><p>"The Central Commission for Discipline Inspection (CCDI) announced earlier this week that it has started its next round of corruption inspections," he wrote. "In this round, the CCDI is targeting 26 government bodies and state-owned companies, including the Ministry of Transport, the "People's Daily," and the National Railway Administration."</p><p>What that means is that if you work at a state-owned company, you might not want to advertise the fact that you're living it up at Macau's casinos.</p><p>Combine this with a <a href="http://www.businessinsider.com/china-is-in-the-midst-of-a-triple-bubble-2015-7">weak economy</a> and a <a href="http://www.businessinsider.com/china-crash-is-making-the-rich-richer-2015-7">sliding stock market hammering retail investors</a> and you still have a perfect mix of reasons for gamblers to be cautious. </p><p>Then again,<a href="http://www.businessinsider.com/broken-tooth-reportedly-opens-macau-vip-room-2015-6"> notorious former (if that's possible) Triad member Broken Tooth</a> is back in town setting up his own VIP junket. So maybe he knows something we don't know.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/omaha-steaks-unboxed-mail-order-2015-5">Here's what you get when you order 'Omaha Steaks' in the mail</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="BxanQ3dTqLutSb3FfaAJBvFo3VETCmUT" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'BxanQ3dTqLutSb3FfaAJBvFo3VETCmUT',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Wall Street's walking into a Macau trap

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a4587124aa6b526008b757e-1199/bitcointransactionfees.png" alt="bitcoin_transactionfees" data-mce-source="Bitcoinfees.Info" data-mce-caption="Bitcoin transaction fees have gone from around $2 a transaction in October to $37 in late December." data-link="https://bitcoinfees.info/" /><p class="source"><span><a href="https://bitcoinfees.info/">Bitcoinfees.Info</a></span></p><p class="caption">Bitcoin transaction fees have gone from around $2 a transaction in October to $37 in late December.</p></div><p></p></div></div>Bitcoin use in the real world may have started with the <a href="http://www.businessinsider.com/may-22-bitcoin-pizza-day-2014-5?IR=T">purchase of a pair of pizzas</a>, but you'd be unlikely to see it used for such a minor exchange today.</p><p>That's because as bitcoin has soared in popularity it's become too expensive to use in small transactions. </p><p>The problem came to a head in early December, when Steam, the popular downloadable video game store, announced it would stop accepting bitcoin payments for games, citing the currency's volatility and high transaction fees. Steam relied on a bitcoin payment system called BitPay. Among BitPay's other customers are Microsoft, online retailer NewEgg, and APMEX, which sells precious metals online.</p><p>Business Insider checked in with BitPay communication manager James Walpole to find out why bitcoin transactions have become so costly. Here's what he had to say: <span><br /></span></p><h2><strong>Don't blame BitPay for high bitcoin transaction costs</strong></h2><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a469fb04aa6b51c008b79b9-747/invoice-payment-diagram563b87cd.png" alt="invoice payment diagram.563b87cd" data-mce-source="BitPay" data-mce-caption="BitPay provides an application that lets merchants accept bitcoin as payment in exchange for goods." /><p class="source"><span>BitPay</span></p><p class="caption">BitPay provides an application that lets merchants accept bitcoin as payment in exchange for goods.</p></div><p></p></div></div></p><p>You might think that services like BitPay are to blame for bitcoin's high transaction costs. After all, BitPay's service, which lets merchants accept bitcoin as payment, is similar to a credit card processing service, and retailers are often complaining that credit card fees cut into their profits.</p><p>But the fees charged by BitPay and similar companies represent only a small portion of the total cost of a typical bitcoin transaction. For its part, BitPay charges merchants a 1% processing fee per transaction. If a customer spends $10, BitPay keeps $0.10, while sending the vendor the remaining $9.90. </p><p>That's the same fee charged by BitPay rival CoinGate, but one that is less than what's charged by Stripe or Visa on credit card transactions. Those fees can add up over many transactions, but they're not what's making individual bitcoin payments so costly.</p><h2><strong>Instead, blame the bitcoin miners</strong></h2><p>So if it's not BitPay and other bitcoin payment processors that are making transactions using the cryptocurrency so expensive, what is? Walpole points the finger at bitcoin miners.</p><p>Miners are the people or companies that record data in the bitcoin blockchain, the digital ledger that keeps track of all bitcoin transactions. Miners save those transactions in so-called blocks; they complete a block by solving ever-more-complex cryptographic puzzles.</p><p>Mining has become an expensive proposition. It requires high-powered computers that use lots of energy. Miners are typically in the business to make money. They're compensated for their services in three ways.</p><p>When they solve a particular puzzle and complete a block, they are awarded with newly created bitcoin. But they also collect fees from both individual bitcoin holders and from bitcoin payment processors such as BitPay. </p><p>Its those fees that have made using bitcoin so pricey.</p><h2><strong>Mining fees are skyrocketing</strong></h2><p>The first type of fee miners collect are mining or transaction fees. These fees in particular are surging.</p><p>At the end of September, <a href="https://bitcoinfees.info/">the average bitcoin mining fee</a> was around $2 per transaction. By December 21, average fees reached a high of around $37. </p><p>The surge in fees was a matter of supply and demand. As bitcoin's price surged from $10,000 to $20,000, increasing numbers of people wanted to invest in the cryptocurrency. The upsurge in users and transactions increased the demand for miners' services.</p><p>At the same time, supply is constrained. The blockchain system that underlies the cryptocurrency can only process around 3 to 7 transactions per second. So at any given moment, a greater number of transactions were competing for a relatively small number of slots in the ledger.</p><p>But another, related factor was at work too. Mining fees, which are paid by individual users to miners, are actually optional; bitcoin users don't have to pay them. But they usually do, because the fees encourage miners to record their transactions sooner rather than later. The sooner you want a transaction written to the blockchain, generally the higher mining fee you'll have to pay.<strong> <br /></strong></p><p>The advantage of having a transaction recorded quickly is that the sooner it's recorded, the sooner you can spend or sell the coins you've received - and the sooner a merchant will mark a deal as completed. That speed can be important when using bitcoin to buy high-demand goods, like concert tickets, which can sell out fast.  </p><p>But speeding the recording of bitcoin transactions has been particularly important in a volatile market such as the one the cryptocurrency has experienced in recent months. With the price of bitcoin fluctuating by hundreds or even thousands of dollars in mere hours or minutes, there's a big benefit to being able to buy and sell coins sooner rather than later - and many bitcoin traders have been paying up for just that advantage. <span></span></p><h2>There's also network costs</h2><p>In addition to mining fees, bitcoin users often have to pay a second fee that ultimately goes to miners, something called a network fee. Payment processors such as Bitpay and Coinbase collect such fees from consumers making purchases to pay miners to move funds from an individual customer's bitcoin wallet address to that of a merchant. The payment processors add the fee to the transaction total.</p><p>So when a customer buys something from a merchant using BitPay via the customer's personal digital wallet, the total the customer pays includes both the price of the purchased item and the network cost. BitPay doesn't make any profit off this fee though, Walpole said.</p><p>Like mining fees, network costs fluctuate based on how busy the network is. Unlike mining fees, however, network charges aren't optional; BitPay charges them on all transactions it handles to ensure that miners record those transactions as quickly as possible.  </p><h2><strong> Volatility matters, but not why you think</strong></h2><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5a4588a74aa6b519158b73c8-814/bitcoinpricethurs.png" alt="bitcoinprice_thurs" data-mce-source="Markets Insider" data-mce-caption="The USD price of bitcoin has fluctuated considerably since September." /><p class="source"><span>Markets Insider</span></p><p class="caption">The USD price of bitcoin has fluctuated considerably since September.</p></div><p></p></div></div></p><p>Bitcoin's price has fluctuated a lot over the last year, but overall has gone way up. And bitcoin transaction costs have gone up in tandem with it.</p><p>But the rise in bitcoin's value and the jump in transaction fees aren't as closely linked as they may sound. The price of bitcoin doesn't have a direct impact on transaction fees. It's not like miners are charging more or bitcoin users are having to pay higher fees just because bitcoin is worth more. </p><p>Instead, all of the volatility in the price of bitcoin had led to more people buying and selling the cryptocurrency - which has meant a whole lot more transactions that need to be recorded. And more demand has led to higher fees. </p><p>But volatility is affecting demand in a more important way. Because of those fluctuations, the value of bitcoin can change significantly in a short amount of time. When there are a lot of transactions taking place, it can potentially take days to record them all, during which time bitcoin's value could have changed by thousands of dollars.</p><p>Merchants risk losing money if they lock in a price with a customer and the value of bitcoin falls before the transaction is completed. That's not a risk many merchants or bitcoin traders take lightly, so many have been willing to accept higher fees to speed the recording of their transactions.</p><h3><a href="http://www.businessinsider.com/what-is-blockchain-how-does-it-work-explainer-2017-11?r=article"><strong>Read more about the blockchain technology<span> </span>that powers bitcoin<span> </span>here.</strong></a></h3><h3><strong><a href="https://t.co/WumVnuL8yj" target="_blank" rel="noopener">Subscribe to our Crypto Insider newsletter for the best of the blockchain every day</a></strong></h3><p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;"><a href="http://read.bi/bitcoin-101-free"><img src="https://intelligence.businessinsider.com/image/5a3054550b0f272e008b4d63-480" style="margin-right:15px;width:75px;float:left !important;" /></a><strong>EXCLUSIVE FREE REPORT:</strong><br>The Bitcoin 101 Report by the BI Intelligence Research Team.<br><strong><a href="http://read.bi/bitcoin-101-free">Get the Report Now »</a></strong></br></br></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/why-you-should-never-throw-away-silica-bags-again-2016-2">Why you should never throw away these bags again</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/Pr0QsrlC-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The cost of bitcoin payments is skyrocketing because the network is totally overloaded

<p><div class="image-container float_right" style="width:480px"><div class="image"><img src="http://static4.businessinsider.com/image/5208a32eecad04d707000010-1200-900/greentech-terry-mcaulliffe-bill-clinton-haley-barbour.jpg?maxX=480" border="0" alt="greentech terry mcaulliffe bill clinton haley barbour" width="480" /><p class="source">AP</p><p class="caption"><keyword id="10212" type="PERSON" weightage="60" keywordseo="Bill-Clinton">Bill Clinton</keyword> speaks at the opening of GreenTech automotive. Close friend and company chairman Terry McAulliffe sits in the background.</p></div></div>TUNICA, Miss. (AP) — Four years ago, a startup car company announced with great fanfare big plans for the Mississippi Delta: Using money from foreign investors and other sources, it would build a massive auto plant to churn out a new line of energy-efficient cars and bring thousands of jobs to the area.</p>
<p>It seemed like a win for everyone involved. The foreign investors who plunked down at least $500,000 for the venture would get the opportunity to stay in the United States and a path to citizenship, an impoverished area of Mississippi would get some desperately needed jobs, the state would generate tax revenues, and the political leaders involved would be able to tout job-creation prowess.</p>
<p>Today, the place where the plant was to be remains mostly vacant except for a temporary construction trailer. The company — GreenTech Automotive Inc. — is under investigation by the Securities and Exchange Commission and the probe is reverberating well beyond Mississippi's borders, bringing scrutiny to a Virginia gubernatorial candidate and the company run by the brother of former Secretary of State Hillary Rodham Clinton.</p>
<p>"Back in 2009, it was a big deal," said 21-year-old casino employee Perry Turner, who lives across the highway from GreenTech's mostly empty site in rural Tunica County. "I haven't heard much else about it."</p>
<p>Some analysts say it was a risky business plan and foreign investors may have been more interested in an easy way to get a visa and a chance at citizenship than trying to support a venture that had a good chance to turn a profit or create jobs.</p>
<p>In October 2009, GreenTech's owner, Chinese businessman Xiaolin "Charles" Wang, unveiled four prototype cars during a flashy ceremony and promised to build a $2 billon plant in the heart of the Mississippi Delta.</p>
<p>Besides backing from foreign investors, some 100 acres were donated by Tunica County's economic development foundation, at a cost of $1.8 million, and in 2011 the state gave a $3 million loan toward site preparation. For a time, the company's chairman was politically connected heavyweight <keyword id="215050" type="PERSON" weightage="60" keywordseo="Terry-McAuliffe">Terry McAuliffe</keyword>, a close adviser to both former President Bill Clinton and his wife, a former Democratic national chairman. McAuliffe is now a contender for Virginia governor.</p>
<p>The cars were supposed to start rolling off the assembly line in 2012. The company now hopes to start producing cars next year. And while they say they still plan to build a plant in Tunica County, all that was on the land on a recent afternoon was a construction trailer, a few pieces of equipment and a few workers strolling around.</p>
<p>The company instead now uses a former elevator factory 30 miles away in Horn Lake. A McAuliffe spokesman said about 100 small electric vehicles were built by the time McAuliffe resigned from the company in December. The thousands of promised jobs have yet to materialize.</p>
<p>"It takes time to build a brand new company in a capital-intensive industry like electric vehicles, and we will not cut corners on quality or safety as we progress. We have a plan. The plan is working. We're sticking to it," GreenTech said in a statement.</p>
<p>The company said it has more than 100 workers and "once production is ramped up" should employ at least 350 — the same number of jobs required under the state loan agreement.</p>
<p>Jeff Rent, a spokesman for the Mississippi Development Authority, said the company has assured the agency they're on track to meet hiring goals.</p>
<p>Industry analysts say the company faces hurdles to succeed.</p>
<p>"A brand-new electric car company without an established U.S. partner, or global partner, is a lofty goal," said Joe McCabe, president of AutomotiveCompass, which forecasts global vehicle and power train production. "They're one of several other electric manufacturing startups entering a tough market. They have to come with something better to the game, not just an also-ran."</p>
<p>Other analysts say GreenTech exposes problems with a program used to attract foreign investors — known as the EB-5 visa program.</p>
<p>David North, a fellow with the Center for Immigration Studies, a nonprofit based in Washington, D.C., that examines immigration policies, said the foreign investors in the EB-5 program are primarily motivated by a desire to get green cards for them and their families, not to find lucrative propositions.</p>
<p>"So this EB-5 program by its very nature is often linked to second- and third-class investments," he said.</p>
<p>Under the EB-5 visa program, foreigners can invest $500,000 or $1 million in American business ventures depending on the location of the project. In GreenTech's case, the program called for $500,000 investments.</p>
<p>The EB-5 program is capped at 10,000 investors a year, and had 6,106 applicants in 2012.</p>
<p>Under the rules of the program, each EB-5 investment must create at least 10 jobs. In exchange, the foreign investors get to stay in the United States for up to two years and can then apply for full citizenship, a speedier process than afforded to most other immigrants who must wait five years after establishing residency before being eligible for citizenship.</p>
<p>The federal U.S. Citizenship and Immigration Services' Immigrant Investor Program also designates so-called "regional centers," companies that have authorization to handle the company's EB-5 investments — and can collect thousands of dollars in fees from foreign investors to process their visa applications.</p>
<p>In this case, Gulf Coast Funds Management — a company headed by Tony Rodham, Hillary Clinton's brother — is the designated "regional center" and has raised 45.5 million from foreign investors for GreenTech, according to an internal immigration services document obtained by The Associated Press that outlines background information about the firm. Rodham has not responded to phone messages at Gulf Coast Funds or a message sent to an email address listed in government reports submitted to the government.</p>
<p>Hybrid Kinetic Motors, a predecessor to GreenTech, paid Gulf Coast $250,000 for assistance in setting up the EB-5 program, according to a lawsuit between Wang and his former partner. Regional centers collect additional fees for processing the investments.</p>
<p>Of GreenTech's 91 foreign investors, only one has received permanent residency status, according to an internal immigration services document obtained by the AP that outlines background information about the firm; the name of the investor was not disclosed.</p>
<p>Simone Williams of GreenTech said "every one of our first two rounds of EB-5 investors was approved and their investment was released to GreenTech Automotive." But she did not provide the number of investors.</p>
<p>She said the government's pace in approving foreign investors has slowed down plans to start construction at its Tunica County facility.</p>
<p>Christopher Bentley, spokesman for immigration services, said in an email he couldn't comment on details on the plans by GreenTech and Gulf Coast Funds.</p>
<p>In May, the SEC subpoenaed unspecified documents from GreenTech and banking records from Gulf Coast, according to nearly 100 pages of documents recently released by Sen. Charles Grassley, R-Iowa.</p>
<p>The documents indicate GreenTech allegedly improperly guaranteed investors returns on their money. GreenTech has acknowledged receiving the subpoenas and said the company is cooperating with investigators.</p>
<p>The Department of Homeland Security inspector general also is investigating allegations that USCIS director Alejandro Mayorkas— President Barack Obama's pick for the No. 2 slot at DHS — used his influence to help Gulf Coast obtain a foreign investor visa for a Chinese executive.</p>
<p>Since the 2009 groundbreaking, GreenTech has changed its business plan. Instead of producing versions of the four prototypes it showcased then, including hybrid cars, it now says its plant, when built, will have the capacity to make 30,000 electric vehicles each year, including a sedan and small electric vehicles known as MyCars. It now aims to have the first ones rolling off the line in Tunica by April.</p>
<p>In the meantime, GreenTech has been using space at an old elevator factory in Horn Lake, Miss., where the company says it's building MyCars, neighborhood electric cars that are a cross between a golf cart and a full-sized vehicle. It's not clear how many of the MyCars — which are not legal to drive on U.S. highways — have been sold.</p>
<p>GreenTech recently declined an AP request to tour the Horn Lake facility. The company won't say how many MyCars it has produced or sold, but says it has "international distribution agreements for 30,000 vehicles over the next three years."</p>
<p>Local officials haven't lost hope it will all still happen as advertised.</p>
<p>"I still look at this as an ongoing economic development project," said Lyn Arnold, president and CEO of the Tunica County Chamber of Commerce.</p>
<p>Some residents are ready to see results, like 33-year-old waitress Shaquita Pickett, who said a car plant would be a big boost for the county.</p>
<p>"We really do need one here because we need better jobs," she said.</p>
<p>___</p>
<p>Weiss reported from Charlotte, N.C. Associated Press writers Jeff Amy in Jackson, Miss.; Bob Lewis in Richmond, Va.; Alicia A. Caldwell in Washington D.C.; Michael Kunzelman in New Orleans; and AP researchers Judy Ausuebel and Rhonda Shafner contributed to this report.</p>
<p>___</p>
<p>Follow Holbrook Mohr on Twitter at http://twitter.com/holbrookmohr</p>
<p>Follow Mitch Weiss on Twitter at http://twitter.com/mitchsweiss</p>
<div class="nc_footer">
<p>Copyright (2013) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.</p>
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'Green' Car Startup Associated With Clinton Pal Has Been A Flop, And Is Now Being Investigated By The SEC

<p><a href="http://www.businessinsider.com/mobile-world-congress-2015"><img src="http://static2.businessinsider.com/image/54f0a62d6da8115160db7c9a-800-75/mobile-world-congress-2015-banner03.png" border="0" width="800" height="75" /></a></p><p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54f2b4726bb3f71270ca3359-1200-924/samsung-galaxy-s-6-edge.jpg" border="0" alt="samsung galaxy s 6 edge" style="color: #000000;"><p class="source"><span>Business Insider</span></p><p class="caption">The Samsung Galaxy S 6 Edge has a curved screen.</p></img></div><p></p></div></div>Samsung is starting from scratch.</p><p>Over the last four years, its flagship Galaxy S phones have sported the best displays and most powerful chips in the industry, but all of that was wrapped in cheap-feeling plastic casings. Meanwhile, Apple, HTC, and Xiaomi have been pumping out gorgeous phones made out of premium materials.</p><p>That will change in April when Samsung launches the Galaxy S 6, its new flagship phone announced at the Mobile World Congress in Barcelona. The Galaxy S 6 is made entirely of metal and glass and will come in two variations: The "regular" Galaxy S 6 and the Galaxy S 6 edge, which has a curved screen.</p><p>Samsung started designing the Galaxy S 6 from the ground up about a year ago under a program it called Project Zero. Whereas the last few Galaxy models were designed with the previous model in mind, the Galaxy S 6 is entirely new. Samsung even abandoned some of its earlier principles in order to highlight the design of the Galaxy S 6. It's not waterproof. You can't swap out the battery. And there's no slot to insert extra memory.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54f2b68869bedddc30ca3353-1008-756/samsung-galaxy-s-6.jpg" border="0" alt="Samsung Galaxy S 6"><p class="source"><span>Business Insider</span></p></img></div><p></p></div></div></p><p>Both models do all the same stuff, except the Galaxy S 6 edge has a few extras. It lets you swipe over from the curved portion of the screen to view a list of your favorite contacts and get alerts when you have a missed call or text from one of them. Other than that, Samsung says the curved screen doesn't serve any function other than to look good. (It'll also be more expensive, but Samsung hasn't said how much either phone will cost yet.)</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54f2b2586bb3f7e765ca3356-965-724/galaxys6edgenotificationsofficialjpg.jpg" border="0" alt="GalaxyS6EdgeNotificationsOfficial.JPG"><p class="source"><span>Lisa Eadicicco</span></p><p class="caption">The Galaxy S 6 Edge lets you peek at missed calls from your favorite contacts.</p></img></div><p></p></div></div><span style="line-height: 1.5em;">The Galaxy S 6 will come in a variety of shimmery colors - white, black, gold, blue, and dark green. Samsung used a special process to make the glass shift colors when viewed at different angles, and there's an aluminum frame around the edge holding it all together.</span></p><p><span style="line-height: 1.5em;"><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54f0dbb86da811590cdb7c9b-1200-426/galaxys6edgeofficialcolors.png" border="0" alt="GalaxyS6EdgeOfficialColors"><p class="source"><span>Lisa Eadicicco/ Business Insider</span></p><p class="caption">The Galaxy S 6 will come in a variety of colors.</p></img></div><p></p></div></div><span style="line-height: 1.5em;">Besides the physical design, Samsung has cleaned up its software too. The phone isn't bogged down with a bunch of unnecessary features and extras. The new version of Samsung's TouchWiz skin for Android is cleaner and easier to navigate. All the basic apps like email, calendar, and music have a new look. Plus, the phone will ship with some of Microsoft's Android apps like OneNote, OneDrive, and Skype.</span></span></p><p>On the hardware site, Samsung improved the phone's 16 MP camera with optical image stabilization and some software features like one that lets you track a moving subject and remain focused on it. The phone also includes a special plug that lets you charge it faster than normal, up to 50% in 25 minutes. Samsung also included wireless charging for the first time. It works with standard wireless chargers, or you can buy Samsung's own charger, which looks kind of cool:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54f0e00d6bb3f70b2cf57f46-1150-596/galaxys6chargingofficial.png" border="0" alt="GalaxyS6ChargingOfficial"><p class="source"><span>Lisa Eadicicco</span></p><p class="caption">The Galaxy S 6 will work with standard wireless chargers.</p></img></div><p></p></div></div><span style="line-height: 1.5em;">Samsung also improved the fingerprint sensor embedded in the home button. Last year's model required you to swipe your finger across the button just right in order to unlike the device. The Galaxy S 6's sensor is more like the Touch ID sensor on the iPhone, which means you can place your finger on the button in any orientation and it'll register. In our tests, the Galaxy S 6 fingerprint sensor worked just as well as the one on the iPhone.</span></p><p>The new fingerprint sensor also enables Samsung's new mobile payments platform Samsung Pay, which will launch this summer. Visa and MasterCard have already signed up as partners, and Samsung says its in discussions with credit cards and banks like Bank of America and American Express to bring them on board in time for launch.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/54f2b54becad046612ca3352-1200-600/galaxys6officialhomebuttonjpg-3.jpg" border="0" alt="GalaxyS6OfficialHomeButton.JPG"><p class="source"><span>Lisa Eadicicco</span></p></img></div><p></p></div></div><span style="line-height: 1.5em;">Samsung Pay will have one key advantage over Apple Pay though. It'll work with regular magnetic credit card readers, which in theory means it'll be compatible with far more retailers' payment terminals. Apple Pay only works if the retailer has a special NFC payment pad. (Samsung Pay will also support NFC.)</span></p><p>The magnetic card reader technology is powered by LoopPay, a startup <a href="http://www.businessinsider.com/samsung-buys-looppay-2015-2">Samsung bought a few weeks ago</a>. However, Samsung Pay is only for making purchases in physical stores, you can't use it to make purchases online or through shopping apps like you can with Apple Pay.<span style="line-height: 1.5em;"><br /></span></p><p>Now comes the hard part. Samsung has been struggling to compete at the high-end of the smartphone market as new companies emerged that make phones that are just as good, but cost half as much. So far, Samsung phones haven't been able to differentiate themselves enough to justify their extra cost. The hope this time seems to be a premium design will do the trick.</p><p>The Galaxy S 6 and Galaxy S 6 edge go on sale this April on all the major carriers. Pricing will vary by carrier.</p>

Here's your first look at Samsung's new phones: The Galaxy S 6 and Galaxy S 6 Edge

<p><div class="KonaFilter image-container float_right"><div class="image"><img src="http://static6.businessinsider.com/image/5279347a6bb3f71237c6c5bc-1200-900/macau-8.jpg?maxX=480&amp;maxY=360" border="0" alt="macau casino" width="480" height="360" /><p class="source">REUTERS/Bobby Yip </p></div><p></p></div>A stunning $202 billion in "ill-gotten funds are channeled through <keyword id="6517" type="COUNTRY" weightage="60" keywordseo="Macau">Macau</keyword> each year," according to <a href="http://www.cecc.gov/publications/annual-reports/2013-annual-report">The Congressional-Executive Commission on China Annual Report 2013</a>.</p>
<p>Diplomatic cables released by<a href="http://wikileaks.org/cable/2009/12/09HONGKONG2313.html"> Wikileaks</a> claimed that the casino and hospitality sector accounted for over 50% of Macau's GDP but that, "its phenomenal success is based on a formula that facilitates if not encourages <keyword id="6355008" type="UNKNOWN" weightage="60" keywordseo="money-laundering">money laundering</keyword>."</p>
<p>And a lot of that money comes from <keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword>.</p>
<p>Macau casinos pulled in a <a href="http://www.bloomberg.com/news/2013-11-01/macau-casino-revenue-rises-to-record-in-october.html">record 36.5 billion patacas ($4.57 billion)</a> in revenue in October, largely driven by Chinese visitors.</p>
<p>In 1999, Macau saw 800,000 mainland Chinese tourists.  That figure exploded to about 12 million in 2008 and then <a href="http://www.scmp.com/news/china/article/1189367/mainland-chinese-influx-prompts-macau-mull-visitor-cap">17 billion in 2012</a>. In 2012, another 11 million visitors came from <a href="http://www.traveldailynews.asia/news/article/51417/modest-growth-for-macao-tourism">Hong Kong and Taiwan</a>.</p>
<p><a href="http://wikileaks.org/cable/2009/12/09HONGKONG2313.html">Diplomatic cables released by Wikileaks</a> claimed that the casino and hospitality sector accounted for over 50% of Macau's GDP but that, "its phenomenal success is based on a formula that facilitates if not encourages money laundering."</p>
<p><span style="text-decoration: underline;"><strong>How exactly does it work?</strong></span></p>
<p>China only allows 20,000 yuan ($3,200) to be moved out of the Mainland at a time and $50,000 a year. To circumvent that, Chinese high rollers can do one of two things. They can deposit money with junkets in the mainland and use that money in Macau, or they can borrow from third-party junket agents. </p>
<p>If they choose to deposit the money, the junkets, who are basically gaming promoters, ferry money across borders. The gamblers can then use that money in Macau. Once they're done gambling they can take their winnings in U.S. funds or Hong Kong dollars and invest it in property or offshore tax havens.</p>
<p>These junket agents vary from sole proprietorships to publicly listed companies. They help arrange for visas and accommodations, including VIP rooms. They also collect gambling debts. </p>
<p>Frequently, the money that ends up here has come through illegal means, through bribes or embezzlement.</p>
<p>A paper from <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2263202">Jorge A. F. Godinho, at the University of Macau</a> - Faculty of Law explains how junkets play a role in money laundering in Macau.</p>
<p style="padding-left: 30px;">"According to the FATF and Asia/Pacific Group on Money Laundering (APG), there are several vulnerabilities regarding promoters, including the fact that their intervention enables the creation of an additional layer which may not contribute to knowing the identity of the players and the source of funds, in addition to the fact that not all jurisdictions regulate gaming promoters and/or their representative offices.</p>
<p style="padding-left: 30px;">"...Gaming promoters may assist in the transfer of funds to the casinos of Macau. In the case of VIP Baccarat, the amounts involved can be very significant. Moreover, in many cases, there will be no actual transfer of funds, but rather a simple balancing of accounts between credits in mainland China and debits in Macau. This is one of the reasons why the gaming promoter sector is rather developed.</p>
<p style="padding-left: 30px;">"There is no doubt that this channel can also serve for the movement of funds of an illicit origin, whether coming from corruption, embezzlement of public or private entities, or any other sources. Hence the particular need for rules and procedures for the detection of illegal transfers."</p>
<p><div class="KonaFilter image-container float_right"><div class="image"><img src="http://static6.businessinsider.com/image/5279327b69bedd053a41ccc4-1200-924/macau-gambling-1.jpg" border="0" alt="macau gambling" width="480" height="359" /><p class="source">REUTERS/Bobby Yip</p><p class="caption">A Grease themed slot machine in Macau</p></div><p></p></div></p>
<p><span style="text-decoration: underline;"><strong>Triads</strong></span></p>
<p>Triads, or Chinese organized crime units, "dominate the junket industry," <a href="http://www.foreignpolicy.com/articles/2013/01/28/broken_tooth_and_new_macau_gambling_china?page=0,1">according to Benjamin Carlson at Foreign Policy</a>.</p>
<p>Since Chinese courts don't recognize or enforce payments on casino debts and since gambling is illegal in China, junkets often rely on triads to collect their debt.</p>
<p>Triads that operate in Macau and around the world, partake in everything from money laundering to drug and human trafficking.</p>
<p>Diplomatic cables released by Wikileaks that date back to 2009 explain how unregulated junkets are:</p>
<p style="padding-left: 30px;">"Although they must register and are subject to nominal regulation in Macau, these facilitator organizations allegedly work closely with organized crime groups in mainland China to identify customers and collect debts. Junket operators work directly with Macau casinos to buy gaming chips at discounted rates, allowing players to avoid identification. </p>
<p style="padding-left: 30px;">"Know-your-customer (KYC) and record-keeping requirements are significantly looser than in other international gaming venues.  Government efforts to regulate junket operators in Macau have been aimed at limiting competition, rather than combating illicit activities.</p>
<p style="padding-left: 30px;">"Oversight of both casinos and junket operators is limited and remains a serious weakness in Macau's AML regime.  Periodic tightening of Chinese Individual Visitor Scheme permit requirements may reflect Chinese government concern about corrupt officials laundering money in Macau."</p>
<p>Another way illicit money finds its way to Macau's casinos is through pawn shops. Visitors buy goods from a pawn shops with a debit card and then sell it back for cash.</p>
<p><span style="text-decoration: underline;"><strong>Cracking Down</strong></span></p>
<p>Since the Chinese handover late last year, Beijing has been cracking down on corruption which has included efforts to regulate the gambling industry. In December, some <a href="http://www.bloomberg.com/news/2012-12-04/macau-casinos-drop-on-report-of-junket-arrests-hong-kong-mover.html">junket operators were arrested.</a></p>
<p>Last year, Senator John McCain raised concerns about illicit money from Macau making its way into the American political sphere by pointing out that CEO of Las Vegas Sands Corporation, Sheldon Adelson, got his profits from Macau.</p>
<p>Macau is considering implementing a <a href="http://www.bloomberg.com/news/2013-07-08/macau-considers-requiring-tourists-to-declare-cash-at-border.html">cross-border cash declaration system</a> to restrict money laundering, though no specifics were unveiled.</p>
<p>A real crackdown on money laundering seems to still be a ways away.</p>

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