• 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 gambling growth to slow in 2H 2018: Bernstein

Jan 12, 2018 Newsdesk Latest News, Macau, Top of the deck  


Macau VIP gambling growth to slow in 2H 2018: Bernstein

Macau’s VIP gambling segment is likely to see a “significant” slowing of growth in the second half of 2018, says brokerage Sanford C. Bernstein Ltd.

The institution said in a Friday note that such a trend would in likelihood be due to a number of political and economic factors expected to affect neighbouring mainland China, which supplies a majority of the gamblers visiting the city.

“Although it is likely to continue to show strength over the next few months (or even the next two quarters in 2018), the VIP model is likely to face structural headwinds in the latter part of 2018 from instituted cooling measures on Chinese real estate, a credit tightening in China, an increasing [focus on] regulatory environment in Macau and continued Chinese government focus on capital outflows in China,” stated the brokerage’s analysts Vitaly Umansky, Zhen Gong and Cathy Huang.

“While growth will decelerate from 2017, 2018 will still show respectable growth (driven more by mass) and long term secular growth drivers are still in place,” said the memo.

“In 2018, we expect total GGR [gross gaming revenue] to grow 10 percent year-on-year, and VIP GGR and mass GGR will grow 8 percent year-on-year and 11 percent year-on-year respectively,” added the brokerage.

The official growth rate of Macau’s VIP and mass segments respectively for full-year 2017 will not be made public until later this month, when details of fourth-quarter GGR recorded by segment are due to be announced by Macau’s gaming regulator, the Gaming Inspection and Coordination Bureau.

Headline growth for total GGR in 2017 was 19 percent, the gaming bureau revealed on January 1.

A Monday note from investment bank Credit Suisse AG said Macau VIP gross gaming revenue (GGR) growth had slowed since mid-December.

China anti-graft

On December 27, official Chinese news agency Xinhua reported that – following a meeting of the politburo of the Communist Party of China (CPC) Central Committee, led by President Xi Jinping – a statement was issued saying that “the campaign to ensure full and strict governance over the Party and curb corruption shall not stop”.

The same meeting was also said to have received a work report from the CPC Central Commission for Discipline Inspection, and discussed the party’s anti-graft activity planned for 2018.

Business risk consultant Steve Vickers told a meeting in Macau on Thursday that Macau was inevitably going to be drawn into the orbit of China’s anti-graft drive, due to the “huge wall of capital” sitting just over the border on the mainland, some of it seeking a way out of the country.

Mr Vickers noted: “Macau is easy to target [for criticism] but actually things are quite transparent here. You can see a lot. The [financial transaction] numbers are largely published.”

He added: “But because Macau is so large in gaming terms and in banking terms, then it is an obvious target…. Further action on underground banks in China is obviously going to happen; further action on capital outflow is certainly going to happen.”

In 2017, Macau’s casino industry alone generated casino gross gaming revenue equivalent to US$33 billion, but that was 27 percent below the nearly US$45 billion generated at a peak seen in 2013, according to gaming bureau data.

“The yabadabadoo [golden] years are over. It’s a different time now,” stated Mr Vickers, chief executive of Steve Vickers and Associates Ltd, based in Hong Hong.


  • tweet
Related articles
  • Macau monthly GGR for June worst since Sept 2020
    Macau monthly GGR for June worst since...

    Jul 01, 2022  

  • Macau tells casinos cut on-duty staff by 90pct: reports
    Macau tells casinos cut on-duty staff...

    Jul 01, 2022  

More news
  • Sega Sammy to launch Genesis Crest 43J cabinet in Asia
    Sega Sammy to launch Genesis Crest 43J...

    Jul 01, 2022  

  • Kangwon 2021 average bet 61pct above foreigner casinos
    Kangwon 2021 average bet 61pct above...

    Jul 01, 2022  


Latest News

Sega Sammy to launch Genesis Crest 43J cabinet in Asia

Sega Sammy to launch Genesis Crest 43J cabinet in Asia

Jul 01, 2022  

Casino equipment supplier Sega Sammy Creation Inc said in a Friday release it was debuting its Genesis Crest 43J cabinet in Asia. The product will be available at an in-person trade show, G2E Asia:...
Read More
Macau monthly GGR for June worst since Sept 2020

Macau monthly GGR for June worst since Sept 2020

Jul 01, 2022  

Kangwon 2021 average bet 61pct above foreigner casinos

Kangwon 2021 average bet 61pct above foreigner casinos

Jul 01, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


638

Aggregate number of Covid-19 cases in the latest Macau outbreak, as of Thursday-end



Most Popular

  • 5-casino Thai market ok says National Assembly committee5-casino Thai market ok says National Assembly committee June 30, 2022
  • Macau tells casinos cut on-duty staff by 90pct: reportsMacau tells casinos cut on-duty staff by 90pct: reports July 1, 2022
  • Macau drops 48hr nucleic acid test for casino staff, guestsMacau drops 48hr nucleic acid test for casino staff, guests June 30, 2022
  • Universal hopes Okada Manila biz listed before Sept 30Universal hopes Okada Manila biz listed before Sept 30 June 30, 2022
  • Only 2 Macau satellites closed as concessions extendedOnly 2 Macau satellites closed as concessions extended June 29, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us