• 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 rising as mainland graft probes decline: chart

Apr 28, 2017 Newsdesk Latest News, Macau, Top of the deck  


Macau VIP rising as mainland graft probes decline: chart

Macau’s more than two-year recent slump in casino gross gaming revenue (GGR) has often been linked by industry commentators to China’s anti-corruption campaign. A new report from brokerage Sanford C. Bernstein Ltd suggests that months with the highest numbers of announced investigations into allegations of graft in mainland China were frequently months where Macau VIP casino GGR had registered year-on-year declines, or some moderation in demand.

In Friday’s report – as part of research for its new quarterly “China Premium Consumer Tracker” – Sanford C. Bernstein has attempted to quantify the impact of such government action, by plotting in graph form the monthly growth of Macau VIP casino GGR against the number of officially announced investigations by China’s Central Commission for Discipline Inspection (CCDI). The body investigates allegations of graft made against cadres of the ruling Communist Party of China.

Sanford Bernstein’s graph tracked Macau casino VIP GGR performance from March 2013 to March 2017. The graph suggested that since February 2016 there had been a general decline in the number of announced party discipline probes in China, coinciding with a general rise in the VIP GGR year-on-year growth rate.

But even as some brokerages are suggesting that China might have eased its anti-graft drive at party level – and that this could lead to an increase in demand among mainland consumers for Macau gambling, especially at the high-stakes end – other analysts have been warning that the recovery could still be at risk.

Japanese brokerage Nomura said in an April 25 note that a recent “rapid increase in customer deposits” for Macau junkets “not only has been a primary driver of recent VIP outperformance but also has started to attract the attention of government regulators”.

Sanford Bernstein has been warning for some time about a possible tightening of general consumer liquidity in China in the second half of 2017, and that this could have a knock-on effect for Macau VIP gambling demand.

For now though, the China credit upswing seems to be continuing, said an April 14 note from Nomura. China household loans – one indicator of consumer liquidity in the Chinese domestic market – had reached a “record high” in March, said the institution.

“The upside mainly came from shadow banking activity with its growth accelerating by 2.1 percentage points to 11.5 percent” expansion year-on-year,  said the Nomura analysts.

The launch of Sanford Bernstein’s quarterly “China Premium Consumer Tracker” coincides with a “particularly auspicious period for Chinese high-end consumer spending,” said Friday’s report by its team of five analysts.

The indicator tracks data on “jewellery sales, real estate pricing, outbound tourism, international flight traffic, cruise tourism demand, Macau gaming revenues, premium auto sales, high-end liquor consumption, luxury goods retail, and high-end lodging.”

The Sanford Bernstein report stated: “Given the correlations between high-end spending and liquidity, we suspect monetary tightening in China may come to represent a headwind for demand in some of our sectors over time (notably in autos and gaming). For now though, China’s moneyed class appear to be living the dream.”


  • tweet
Related articles
  • Alleged bribe offer to ex-Wynn manager probed by HK, Macau
    Alleged bribe offer to ex-Wynn manager...

    May 17, 2022  

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

    May 16, 2022  

More news
  • Melco to launch new family attraction at Studio City in June
    Melco to launch new family attraction...

    May 19, 2022  

  • Andrew Lo takes controlling stake in Suncity, Summit Ascent
    Andrew Lo takes controlling stake in...

    May 19, 2022  


Latest News

Melco to launch new family attraction at Studio City in June

Melco to launch new family attraction at Studio City in June

May 19, 2022  

Casino operator Melco Resorts and Entertainment Ltd announced on Thursday that it would launch at the end of June a new, themed zone for “family-friendly” entertainment at its majority-owned...
Read More
Andrew Lo takes controlling stake in Suncity, Summit Ascent

Andrew Lo takes controlling stake in Suncity, Summit Ascent

May 19, 2022  

Okada Manila chair Manuel Lazaro dies aged 87

Okada Manila chair Manuel Lazaro dies aged 87

May 19, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$403.9 million

Interim normalised profit after tax and amortisation reported by slot machine maker and online gaming content provider Aristocrat Leisure



Most Popular

  • 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
  • Macau repeat visitors denied visa by China says BernsteinMacau repeat visitors denied visa by China says Bernstein May 16, 2022
  • U.S. says Steve Wynn ‘foreign agent’, lobbied for ChinaU.S. says Steve Wynn ‘foreign agent’, lobbied for China May 18, 2022
  • Alleged bribe offer to ex-Wynn manager probed by HK, MacauAlleged bribe offer to ex-Wynn manager probed by HK, Macau May 17, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us