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 fall by one per cent, Barclays estimates, and Macau's new casino-floor smoking ban could worsen that decline.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Sri Lanka’s economy expected to grow 3% in 2024, central bank says
Yellen says US can bring inflation down without hurting jobs
US dollar briefly falls versus yen after GDP data
US weekly jobless claims unexpectedly fall
US economic growth slows more than expected in Q1
Malaysia ex-PM Mahathir facing anti-graft probe in a case involving his sons