It’s no secret that the disappearance of VIP gamblers has been the core issue dragging down Macau gaming revenue in the past couple of years ever since the government announced a crackdown on corruption.
According to the president of the Association of Gaming and Entertainment Promoters of Macau, Kwok Chi Chung, only 146 VIP gaming rooms now remain on the island. Kwok added that as many as 40 VIP gaming rooms have closed down in the past six months.
“For the past year and a half, the junket operators here still remain distressed by bad debts and tighter capital liquidity,” Kwok told the Business Daily.
Related Link: Macau Revenue Down 21.2% In December
The corruption crackdown, a casino smoking ban and general weakness in the Chinese economy has sent Macau gaming revenues, and the share prices of Macau casino operators Las Vegas Sands Corp. LVS, MGM Resorts International MGM, Wynn Resorts, Limited WYNN and Melco Crown Entertainment Ltd (ADR) MPEL, to multi-year lows.
Disclosure: the author owns shares of Melco Crown Entertainment and Wynn.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
