• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Crackdown on casino marketing in China not policy change: CS

Feb 06, 2015 Newsdesk Latest News, Macau, Rest of Asia, Top of the deck  


Crackdown on casino marketing in China not policy change: CS

Reports that China is having a “crackdown” on foreign casinos that try to set up marketing operations in mainland China is not a departure from the country’s existing policy, said a note from Credit Suisse AG in Hong Kong on Friday.

There have been signs for several months that high stakes Chinese gamblers have been driven offshore because of China’s anti-corruption crackdown and because of a tightening of exit visa rules for rich citizens interested to visit Macau to gamble.

According to a Friday report by Bloomberg News, the Chinese authorities are to target enforcement against casino operators from neighbouring countries that have set up offices in China “to attract and recruit Chinese citizens” to gamble abroad, said Hua Jingfeng, a deputy director at China’s Ministry of Public Security, at a briefing held in Beijing that day.

But Credit Suisse analysts Kenneth Fong and Isis Wong said direct marketing of casino services to mainland Chinese citizens is already forbidden.

“Although this is nothing new, the reiteration of this anti-gambling [policy] by the official means we see little room near-term for China to relax visa trends to Macau,” said the Credit Suisse team.

Reuters news agency reported as long ago as October 2011 that high net worth Chinese gamblers – that mostly play on credit in casinos, rather than using their own cash – are recruited not by mass consumer channels such as direct mailing or solicitation, but via a network of low-key sub-agents within the country. It is the job of such sub-agents not only to recruit the players but also to know the background to their personal and professional lives to ensure they are good for the money advanced to them, added the report.

Credit Suisse said Friday’s announcement from Beijing was more likely to be a negative for Macau casinos, which have turned more toward so-called “premium mass” players – ones that bet high but in cash – for their gaming revenue in the wake of the fall-off in VIP play.

VIP revenue in Macau slipped 29 percent year-on-year in the fourth quarter 2014.

Mr Fong and Ms Wong wrote: “The casino normally sends premium mass hosts to China to ‘visit’ the players and get to know their friends (potential new players). So, by having a much stronger control over the casino representative office in China means this will make their job more difficult to find new players. A slower VIP revenue and [a] harder job [for] premium mass host to source new players means the [Macau] premium mass segment may take longer to recover.”

Sheldon Adelson, chairman of casino operator Las Vegas Sands Corp, said at an event on Wednesday in Macau that the anti-graft push in mainland China is also impacting Macau’s premium mass table games segment.

The Credit Suisse team added on Friday: “For the existing players…they already know Macau or the overseas casinos. So, whether they come or not, doesn’t depend on whether there is any representative office in China. In fact, they are coming less because of 1) the anti-corruption campaign which [means] they choose to lay low; and 2) [the] transit visa restriction now, which is unlikely to be improved in 2015.”


  • tweet
Related articles
  • Digital yuan eventually for Macau mass bets mulls Bernstein
    Digital yuan eventually for Macau mass...

    Jan 22, 2021  

  • Macau airport 2020 passenger volume down 88 pct y-o-y
    Macau airport 2020 passenger volume...

    Jan 13, 2021  

More news
  • Dec hotel occupancy highest since Jan 2020: Macau govt
    Dec hotel occupancy highest since Jan...

    Jan 28, 2021  

  • Studio City likely to raise funds for liquidity needs: specialist
    Studio City likely to raise funds for...

    Jan 28, 2021  


Latest News

Dec hotel occupancy highest since Jan 2020: Macau govt

Dec hotel occupancy highest since Jan 2020: Macau govt

Jan 28, 2021  

Macau’s average occupancy rate for hotels and guest houses for December reached 53.1 percent, the highest level since January 2020, when it stood at 79.4 percent according to Macua government data,...
Read More
Studio City likely to raise funds for liquidity needs: specialist

Studio City likely to raise funds for liquidity needs:...

Jan 28, 2021  

Mohegan teams with Oshidori for Nagasaki casino tilt

Mohegan teams with Oshidori for Nagasaki casino tilt

Jan 28, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"I believe that when Macau makes a decision, there is going to be a requirement to invest more"

Robert Goldstein

Chairman and chief executive of Las Vegas Sands



Most Popular

  • China said to be expanding blacklist for overseas gamblingChina said to be expanding blacklist for overseas gambling January 27, 2021
  • China diplomats warn nationals not to gamble in CambodiaChina diplomats warn nationals not to gamble in Cambodia January 27, 2021
  • Digital yuan eventually for Macau mass bets mulls BernsteinDigital yuan eventually for Macau mass bets mulls Bernstein January 22, 2021
  • Okada Manila warns against online casino, sale rumoursOkada Manila warns against online casino, sale rumours January 25, 2021
  • Cotai expansion to aid Macau EBITDA to 2019 level: CICCCotai expansion to aid Macau EBITDA to 2019 level: CICC January 26, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us