• 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

More scrutiny on Macau junkets negative to sector: Daiwa

Oct 26, 2015 Newsdesk Latest News, Macau, Top of the deck  


More scrutiny on Macau junkets negative to sector: Daiwa

The announcement of stricter accounting rules for junket operators in Macau starting next year “is incrementally negative to the sector as the increased scrutiny comes at a time of continued business challenges for the segment as a whole,” said brokerage Daiwa Securities Group Inc.

“As such, we do not rule out the possibility of a potential renewed and accelerating junket attrition in the coming months,” analysts Jamie Soo, Adrian Chan and Jennifer Wu wrote on a Friday note. “The potentiality of this outcome may result in a further decline in the junkets’ overall liquidity which implies a potential further leg down to VIP volumes in 2016,” they added.

The Macau government earlier this month introduced new guidelines to improve transparency in the junket sector. The city’s Gaming and Inspection Coordination Bureau said all junket operators will have to compile monthly accounting reports starting next year. Junket operators will also have to file with the gaming regulator details on the key personnel in charge of financial operations.

The announcement of new guidelines for the junket sector followed an alleged fraud amounting to tens of millions of U.S. dollars that rocked the Macau VIP gaming segment in September. Macau junket operator Dore Entertainment Co Ltd, which operates VIP facilities at Wynn Macau, announced it had been a victim of internal fraud by a former employee.

Dore said in a statement that a former cage manager “allegedly used her power to conduct unauthorised actions without the company’s knowledge”.

“Some form of policy tightening on junkets was, to some degree, expected post the Dore incident,” the Daiwa team said in its Friday note. The brokerage added it remained “cautious” on the Macau junket sector.

Gross gaming revenue (GGR) in VIP gaming – a segment heavily reliant in Macau on junket operators – fell by 38.0 percent year-on-year across the whole Macau market during the third quarter of 2015, according to official Macau government data. VIP revenue accounted for 53.32 percent of casino GGR in the three months to September 30, down from 55.51 percent in the previous quarter and from 56.45 percent in the prior-year period.


  • tweet
Related articles
  • SJM posts US$390mln 2020 loss, Cotai scheme in 1H
    SJM posts US$390mln 2020 loss, Cotai...

    Feb 23, 2021  

  • GEN Singapore expects China crackdown to hurt VIP biz
    GEN Singapore expects China crackdown...

    Feb 10, 2021  

More news
  • Las Vegas Sands to sell off Nevada assets for US$6.25bln
    Las Vegas Sands to sell off Nevada...

    Mar 03, 2021  

  • Macau Jan gaming tax take US$402 mln, down 63 pct
    Macau Jan gaming tax take US$402 mln,...

    Mar 03, 2021  


Latest News

Las Vegas Sands to sell off Nevada assets for US$6.25bln

Las Vegas Sands to sell off Nevada assets for US$6.25bln

Mar 03, 2021  

United States-based casino operator Las Vegas Sands Corp said in a Wednesday filing that on Tuesday it had made an agreement to sell its Las Vegas, Nevada venues and operations for US$6.25 billion....
Read More
Macau Jan gaming tax take US$402 mln, down 63 pct

Macau Jan gaming tax take US$402 mln, down 63 pct

Mar 03, 2021  

Casino surveillance biz decline tips Synectics to year loss

Casino surveillance biz decline tips Synectics to year loss

Mar 03, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“As a leaner, stronger company, we expect leverage to return to pre-pandemic levels in the next 12-18 months”

Max Chiara

Chief financial officer at gaming product and lottery services provider International Game Technology



Most Popular

  • Galaxy Macau to add Raffles-branded hotel towerGalaxy Macau to add Raffles-branded hotel tower March 1, 2021
  • Macau casino GGR down 9pct m-o-m in February: govtMacau casino GGR down 9pct m-o-m in February: govt March 1, 2021
  • Covid-19 test cert no longer needed for Macau casino entryCovid-19 test cert no longer needed for Macau casino entry March 2, 2021
  • Lim Kok Thay, GEN Singapore execs in US$1.3mln stock awardLim Kok Thay, GEN Singapore execs in US$1.3mln stock award March 2, 2021
  • Suncity to open clubs at Londoner Macao, Lisboa PalaceSuncity to open clubs at Londoner Macao, Lisboa Palace February 26, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us