Continuing the VIP theme, AGI hears that Galaxy, under its Vice Chairman Francis Lui, is pretty relaxed that Neptune—the junket aggregator that feeds high rollers to Galaxy’s jumbo premium floor at StarWorld—has done a deal with Tabcorp in Australia to send premium Chinese players in that direction.
Sources in Macau suggest the deal may be as much about Tabcorp’s need to appease the market and shareholders at home by coming up with a headline grabbing deal after the company’s recent rough ride, rather than about Neptune and its players scouting round for a better business model away from the Pearl River Delta.
Tabcorp does appear though to be attacking that segment of the market populated by the so-called Overseas Chinese—those people with access to foreign passports and bank accounts in convertible currency. That’s exactly the sort of more profitable direct player that Galaxy, MPEL and the others would love to see more of in Macau.
Given the generally favourable tax rates on VIP casino gaming in Australia compared to Macau, who’s to say Tabcorp won’t succeed in prising one or two players away from high tax Macau?
Given Macau’s tax rate, it’s difficult to see Australian high rollers making the reverse trip and coming to Macau to gamble. It’s said, though, that a change is as good as a rest. On that basis, perhaps the excellent transport infrastructure in Macau and the attractive Cotai skyline with its half-finished buildings will be a real selling point to overseas VIPs.
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