• 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
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau VIP dip by compound 4pct yearly to 2023: brokerage

Nov 25, 2020 Newsdesk Latest News, Macau, Top of the deck  


Macau VIP dip by compound 4pct yearly to 2023: brokerage

Macau casino gross gaming revenue (GGR) derived from VIP play could decline at 4 percent compounded annually in the period 2019 to 2023, falling from US$14 billion, to US$12 billion by 2023, suggests a Wednesday report from brokerage Sanford C. Bernstein Ltd.

This was based on its assessment that VIP GGR accounted for 39 percent of Macau’s circa US$36 billion GGR in 2019. The brokerage added that only about 2 percent of Macau’s circa 39.5 million visitors in 2019 were responsible for generating that 39 percent of GGR. Official data from the Macau government said the VIP segment accounted for 46.2 percent of aggregate GGR in full-year 2019.

The institution cited several factors for a likely VIP contraction, including capital liquidity for the junkets; the middlemen that have traditionally brought Chinese high rollers to Macau casinos, and that require a significant stock of working capital for reasons including the hold volatility typically associated with the VIP casino game of choice, baccarat.

Consumer demand was also mentioned in the report by analysts Vitaly Umansky, Tianjiao Yu, Kelsey Zhu and Xiaonan Zhang.

The Sanford Bernstein team said also that it expected Macau aggregate GGR to grow at 2 percent compounded annually between 2019 and 2023, supported by 6-percent growth in the mass-market segment. It forecast Macau market-wide GGR to reach US$40 billion by 2023, with VIP revenue set to “stabilise at less than one-third” of aggregate revenue.

The brokerage also referred to China’s crackdown on “illegal online gambling activity” involving Chinese players. This is typically understood by industry commentators to refer not only to online casino and sports betting sites aimed at Chinese consumers, but also to gambling at tables of licensed casinos, but where the player is not physically present, but uses a “proxy” person to place bets on the absent player’s behalf.

Macau’s gaming regulator issued an instruction in May 2016, clarifying this was not permitted in the Macau market.

In remarks understood to refer to activity beyond Macau, Sanford Bernstein’s analysts wrote: “Due to the intense scrutiny, certain junkets… have shut down their online gambling activities and suffered from investors/depositors looking to pull out funding, while VIP customers have limited their desire to interact via junket for the time being.”

The institution added: “At this stage it is too early to tell what kind of long-term structural impact this will have on junkets being able to do business in Macau.”

The brokerage further noted: “If the same money channels (underground banking in particular) remain under scrutiny, junket liquidity will be tight and have negative ramifications on VIP growth in Macau over the short- and medium-term.”


  • tweet
Related articles
  • Pragmatic Play to offer its slots via online platform bet365
    Pragmatic Play to offer its slots via...

    May 17, 2022  

  • Macau ops share junket deposit liability: Macau top court
    Macau ops share junket deposit...

    May 16, 2022  

More news
  • Manila Westside launch aim still 2024: Suntrust
    Manila Westside launch aim still 2024:...

    May 23, 2022  

  • L&W says plugged in to ETG needs of players, casinos
    L&W says plugged in to ETG needs...

    May 23, 2022  


Latest News

Manila Westside launch aim still 2024: Suntrust

Manila Westside launch aim still 2024: Suntrust

May 23, 2022  

The year 2024 is still the targeted start date for operation of a five-star hotel and casino complex at the Westside City Project (pictured in an artist’s rendering) in Manila, the Philippine...
Read More
L&W says plugged in to ETG needs of players, casinos

L&W says plugged in to ETG needs of players, casinos

May 23, 2022  

Review saw no irregularity in Levo Chan link: Macau Legend

Review saw no irregularity in Levo Chan link: Macau Legend

May 23, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”We anticipate being live with iGaming products in two jurisdictions in the U.S. by the end of calendar year 2022"

Trevor Croker

Chief executive and managing director of Aristocrat Leisure



Most Popular

  • Foreign tourists can get S.Korean peninsula visa from June 1Foreign tourists can get S.Korean peninsula visa from June 1 May 20, 2022
  • Review saw no irregularity in Levo Chan link: Macau LegendReview saw no irregularity in Levo Chan link: Macau Legend May 23, 2022
  • Crown Resorts’ shareholders nod Blackstone bidCrown Resorts’ shareholders nod Blackstone bid May 20, 2022
  • Wynn CEO, Macau execs in base pay cut in return for sharesWynn CEO, Macau execs in base pay cut in return for shares May 17, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us