• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Thursday 11 September 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Second Down Month for Macau in July

Newsdesk by Newsdesk
Mon 4 Aug 2014 at 01:30
Print Friendly, PDF & Email

Macau gaming revenue fell in July for the second straight month as analysts are now focusing on China’s anti-corruption campaign as the culprit behind a chill in the VIP sector that usually generates well more than 60% of the casinos’ traditional haul.

Revenue in the world’s biggest casino market dropped to MOP28.42 billion (US$3.56 billion) in July, a 3.6% decline year on year, according to official results. It was a tough comparison against June 2013’s 20% increase, and analysts polled by Bloomberg News were expecting worse. But coupled with June’s 3.7% drop, which was the first year-on-year decline in five years, the perception is growing that the boom is headed into a period of uncertainty.

“We continue to believe 2014 will be choppy as VIP growth likely remains weak into fourth quarter and we haven’t seen a sustained improvement in revenues post World Cup,” Wells Fargo analyst Cameron McKnight said in a client note. China’s anti-corruption campaign “could impact player sentiment and spending,” he said.

“As we had expected there was no meaningful post-World Cup bounce and our view remains that the primary driver of VIP weakness is political in nature,” brokerage Union Gaming Research Macau said.

President Xi Jinping’s campaign against corruption, which recently snared its highest-ranking official yet in former Communist Party security chief Zhou Yongkang, appears to be affecting luxury spending across the board, from retail jewelry and Rolexes to the business in Macau’s private high-roller salons. Sales of luxury goods in Hong Kong fell by nearly one-third in the second quarter, including a 40% plunge in April.Junket-driven VIP play, which peaked in 2010 and 2011 at close to 70% of the market, fell by 14-18% in July, according to analysts at UBS.

“With Beijing keeping a closer eye on conspicuous consumption and capital flight, being seen buying 10 diamond-encrusted watches or throwing millions at a baccarat game is not recommended,” noted a report in The Wall Street Journal.

“All of a sudden the world is changing,” one casino executive told the Journal. “The central government is much more concerned about junkets getting out of line.” The situation is worrying both junket operators and their VIP customers, who “don’t want to be involved with people who could get them in trouble,” the person said.

Mass-market revenue, on the  other hand, continues to track at a rate approaching +30%, and that’s good news, given that mass play generates around 70% of casino operating profit. With no junket middlemen to cut in for upwards of 40% of the win, the sector is about four times more profitable than VIP. To capitalize, casinos have been shifting resources toward cash play. Sands China, for one, cut the number of its VIP tables by 28% in the quarter ended 30th June 30, reallocating them to the cash floor.

In all, forecasts now are that total gaming revenue will grow in the single digits this year after a 10% increase over the first seven months, which was good for MOP221.5 billion ($27.68 billion).

Revenue was up 18% last year to $45 billion, about seven times  the size of the Las Vegas Strip.

RelatedPosts

Analysts Bearish as Macau’s Slump Is Expected To Continue

Fri 2 Jan 2015 at 23:24

Macau’s November Down Nearly 20%

Mon 1 Dec 2014 at 07:28

Red October: Mass Plummets, Comps Get Tougher

Thu 6 Nov 2014 at 07:16

Macau’s September Down by Double Digits

Thu 2 Oct 2014 at 05:37
Load More
Tags: Macau Gaming Revenues
ShareShare
Newsdesk

Newsdesk

Current Issue

Editorial – Flipping the script

Editorial – Flipping the script

by Ben Blaschke
Thu 28 Aug 2025 at 12:30

This month represents an important milestone for Inside Asian Gaming as we launch IAG EXPO – an expansion of the...

Asia market roundup

Asia market roundup

by Ben Blaschke
Thu 28 Aug 2025 at 12:26

Inside Asian Gaming takes a deep dive into the state of Asia-Pacific’s key gaming markets: who’s hot, who’s not and...

Rewriting the rules

Rewriting the rules

by Newsdesk
Thu 28 Aug 2025 at 11:43

IAG EXPO, taking place at Newport World Resorts from 8 to 10 September, is not your usual trade show. IAG...

Test of character

Test of character

by Newsdesk
Thu 28 Aug 2025 at 11:28

Since its establishment in 1989, Gaming Laboratories International (GLI) has developed into the world’s most trusted name when it comes...

Evolution Asia
Evolution Asia
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
NWR

Related Posts

As sector grows, industry warns that tightening of Philippines eGames regulations threatens to remove all incentives for operators to remain licensed

As sector grows, industry warns that tightening of Philippines eGames regulations threatens to remove all incentives for operators to remain licensed

by Ben Blaschke
Thu 11 Sep 2025 at 11:46

Recent moves to impose significantly tighter regulations on the Philippines online gaming industry – including a ban by the central bank on e-wallet providers linking to online gambling platforms – will unwind regulatory progress and drive licensed operators back to...

More reasons to visit Clark

Korean dining at the Culinary Capital of Clark

by Ben Blaschke
Thu 11 Sep 2025 at 10:49

Hann Resorts in Clark, Pampanga, continues to redefine the integrated resort lifestyle by embracing the global fascination with Korean culture and cuisine. According to Hann Resorts Chairman and CEO Dae Sik Han, a South Korean national, the integration of Korean...

2025 IAG EXPO: Day 2 Highlights

2025 IAG EXPO: Day 2 Highlights

by Newsdesk
Thu 11 Sep 2025 at 07:03

The 2025 IAG EXPO, including the first ever IAG Exhibition, wrapped up on Wednesday afternoon following two incredible days at Manila’s Newport World Resorts. Check out the Day 2 highlights as we take a look at some of the key...

Guiding light

Light & Wonder prices US$1 billion in senior notes to pay down existing debt

by Newsdesk
Thu 11 Sep 2025 at 07:00

Light and Wonder International, Inc – a wholly-owned subsidiary of global gaming supplier Light & Wonder – has priced US$1 billion in aggregate principal amount of 6.250% senior unsecured notes due 2033 in a private offering. The offering includes an...

Your browser does not support the video tag.


IAG

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2025
Inside Asian Gaming.
All rights reserved.

  • English