Macau's casinos worryingly reliant on high-rollers

Hong Kong

A DROP in the number of Macau's high rollers may push the Chinese territory's gambling revenue to its first annual decline on record. Forecasts for next year seem over-optimistic. For many casinos in the coastal enclave, high-spending VIP gamblers are the biggest vulnerability. If they stop playing, the likes of Galaxy Entertainment and Wynn Macau would be particularly hard hit.

China's millennia-long love of gambling is unlikely to abate in the long term, as Las Vegas Sands boss Sheldon Adelson reminded investors on Oct 16. But short-term indicators are worrying. Macau's VIP gaming revenue fell 19 per cent for the three months ending September. In the whole of 2014, casinos' take from gamblers may…