Inside Asian Gaming

INSIDE ASIAN GAMING JANUARY 2018 22 Macau’s VIP segment has been historically volatile, but has surprised with the sheer strength of its resurgence in 2017. What can we expect from VIP in 2018? By Ben Blaschke Strength in numbers FEATURE IN FOCUS I F the jury was out on the sustainability of Macau VIP’s resurgence for much of 2017, it’s not anymore. Having copped the worst of the battering from the city’s two-year decline in gross gaming revenue – which saw VIP GGR fall a massive 39.9% year-on-year in 2015 alone – the segment staged a stunning recovery in 2017 thanks to higher liquidity and better conditions in China. The recovery began in 4Q16 with a 12.7% year-on-year increase in revenue generated through VIP baccarat, then quickly soared upwards with VIP revenue growing 16.8% to MOP$35.5 billion in 1Q17, 34.8% to MOP$35.9 billion in 2Q17 and 28.1% to MOP$36.7 billion in 3Q17. That’s despite analysts warning early in the year that the VIP segment’s first full quarter of growth in almost three years in 4Q16 couldn’t be relied upon to repeat through the rest of 2017. “The strength seen in 4Q16 was not primarily driven by VIP. It was driven by mass,” said Union Gaming’s Head of Equity Research, Grant Govertsen, in January.