Tag Archives: gaming

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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Macau gaming revenue falls

Macau’s gross gaming revenues are back in negative territory, thanks to slowing demand at the high end. The July tally came in at MOP$24.5 billion, down 3.5% YoY, surprising many analysts. This followed positive growth in May and June, which had led to expectations rising of the industry getting back on a positive upward trend.

We are not surprised. Since a Xinhua affiliate published a report recently on offshore online-gambling websites run by some of Macau’s biggest junkets – a report they deny – a drop in VIP play was inevitable. The central government’s Ministry of Public Security has made very clear they regard these online-gaming operations as a threat to national security. 

Read more on ggrasia.com.

Macau gaming regulator keeps calm, carries on

Ever since the story broke 10 days ago on Macau’s Suncity junket aggregator being named as a major money-launderer, media attention has been increasing on Macau’s gaming regulator, known by its Portuguese acronym DICJ. The DICJ responded yesterday by announcing it was not investigatingany further the allegations by mainland state-run media that Suncity operates illegal cross-border gambling networks. 

The article by a Xinhua subsidiary had named Suncity boss Alvin Chau as the mastermind of the online-gambling industry, which is apparently targeting mainland customers via online sites based in Southeast Asian countries. The article put a staggering number on the scale of the industry: RMB1 trillion annually.

Continue reading Macau gaming regulator keeps calm, carries on

GBA Briefs: 19/6/2019

Zhaoqing Park: Zhaoqing’s Deqing district has allocated a 100-acre site for its first industrial park. The park will see a total investment of RMB800 million to build an industrial cluster focusing on electronics and electrical appliances. Read more. 

Qianhai incentives: Shenzhen’s Qianhai is offering rental rebates of up to 50%, capped at RMB5 million annually, to attract those companies that have registered in Qianhai but are not yet operating in the area. Read more. 

Healthy Gaming: Macau’s gaming industry is a pillar of the local economy and local taxation, but the sector should be kept in a state of “healthy development”, said Ho Iat Seng who made a formal announcement yesterday to run for Macau’s chief executive. Read more. 

Superman Gift: Hong Kong tycoon Li Ka-shing is donating RMB100 million to his hometown Shantou University to fund tuition for all undergraduate students for the class of 2022 up until 2027, making it China’s first university to waive tuition fees for its entire student body. Read more. 

PBOC HK Issue: The People’s Bank of China will issue central bank bills worth RMB30 billion in Hong Kong on June 26, with the aim to improve the yuan yield curve in the city. Read more.

Earthquake alert: Shenzhen will build an earthquake-alert system next year which will send out messages to residents through an app on mobile phones or computers. Read more.

New finance zone: Guangdong has issued a white paper to explore the establishment of a Guangdong-Hong Kong-Macau financial cooperation zone, which would trial cross-border finance, financial leasing, shipping and marine finance. Read more

HK GDP: Hong Kong’s GDP increased by 0.6% in real terms in the first quarter of 2019 over a year earlier, compared with the 1.2% increase in the fourth quarter of 2018. Read more

Huizhou lagging: According to Huizhou’s statistics bureau, average per capita disposable income reached RMB33,929 last year, with about 70% coming from monthly salary. The average salary rose 7% in real terms, slower than the average of the province. Read more