Thursday, June 13, 2024 - Login

Junket operators find fortunes outside Macau

Junket operators are increasingly looking to regions outside of Macau, said CLSA analysts in a note on Tuesday.

“Our main conclusion is that while it has taken some time for the stars to align, junket operators are serious about growing their operations in regions outside of Macau.”

Quoting insights from junket consultant Tony Tong, VIP junket operators and VIP customers are heading to countries such as Vietnam, Saipan, and Manila, where commissions and rebates are higher.

“Tony’s insights, along with recent data points such as the Philippines achieving record-high GGR for the third month in a row, confirm that we are seeing a trend of regional leakage, implying that the cycle of negative earnings revisions for Macau VIP will continue,” said CLSA analysts.

“We remain of the view that the worst is not yet over (we forecast -10 percent VIP in 2016),” added the brokerage.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

Contact us

PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264

Asia Gaming Brief