Macau revenues don’t match visitor growth

As we reported yesterday, Macau had a great Golden Week, with 13% more visitors coming in than last year. However, revenues at the casinos, which are still heavily weighted toward VIPs, were down, according to analysts quoted by GGRAsia.

Citing “channel checks” – a widely adopted euphemism for unofficial data culled from unnamed sources – these analysts speculated that gross gaming revenues for the week were down as much as 12% YoY.

However, there was a bright spot, these analysts reckon: the weighting toward low-margin VIP play is being reduced, as mass-market revenues grew strongly, by between 8% and 10%. In other words, more headcounts means more gamblers who don’t have the clout (or the sense) to ask for rebates and commissions, thereby ensuring the casinos healthier margins.

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