Macau Casino Operators Look to Reduce Reliance on VIP Players
14 Fevereiro 2012 - 11:20AM
Marketwired
Casino operators have performed well in the early stages of 2012 as
the Macau gaming market continues to grow. "Better infrastructure
is drawing more Chinese tourists to Macau, benefiting the whole
industry," Gary Pinge, an analyst at Macquarie Securities Ltd. told
Bloomberg. Presently, the Market Vectors Gaming ETF -- which seeks
to replicate as closely as possible an index consisting of publicly
traded companies engaged in the global gaming industry -- is
presently up more than 10 percent year to date. Five Star Equities
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Earlier this month Macau's Gaming Inspection and Coordination
Bureau reported that gambling revenue in Macau, the world's largest
gambling destination, jumped 34.8 percent in January to 25 billion
patacas ($3.13 billion), boosted by a record flow of Chinese
visitors during the Lunar New Year holiday. The tiny island remains
the largest gambling center in the world. Last year Macau generated
more than five times the gambling revenue analysts estimate the Las
Vegas Strip earned.
Despite the strong start to 2012, analysts warn Macau's growth
could slow this year, pricing in a slowdown in growth from 42
percent in 2011 to 11-20 percent in 2012, Reuters says. Wells Fargo
analyst Cameron McKnight goes as far as to forecast 11 percent
gambling revenue growth this year compared with last year's
impressive 42 percent upswing.
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According to a recent article from Reuters, Macau's government
is looking to reduce its reliance on high roller VIP players, who
accrue more than 80 percent of gaming revenues yet make up a
fraction of the millions of people flocking to the region's
casinos.
A recent article from The Wall Street Journal explains that the
VIP market is driven by "junket operators" -- which bring
high-spending gamblers to the casinos, issue them credit and
collect debts in exchange for commissions. "Since gambling debt
isn't recognized in China, there are no legal means for casinos to
recover debts owed to them by Chinese players," The Wall Street
Journal argues.
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