[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Operator News

Macau – Why the ‘yabadabadoo years’ are over for Macau

By - 15 January 2018

The ‘yabadabadoo years’ are over for Macau’s casino industry according to business risk consultant Steve Vickers who believes that China’s anti-graft drive is set to have a continuing negative effect on the industry’s VIP revenue.

He is not alone in predicting a slowing of growth in the second half of 2018.

Mr Vickers said: “Macau is easy to target but actually things are quite transparent here. You can see a lot. The numbers are largely published but because Macau is so large in gaming terms and in banking terms, then it is an obvious target. Further action on underground banks in China is obviously going to happen; further action on capital outflow is certainly going to happen. The yabadabadoo years are over. It’s a different time now.”

His comments followed by a report by brokerage firm Sanford C. Bernstein which warned of a ‘significant’ slowing of growth in the second half of 2018.

The company’s analysts Vitaly Umansky, Zhen Gong and Cathy Huan said:“Although it [Macau] is likely to continue to show strength over the next few months (or even the next two quarters in 2018), the VIP model is likely to face structural headwinds in the latter part of 2018 from instituted cooling measures on Chinese real estate, a credit tightening in China, an increasing [focus on] regulatory environment in Macau and continued Chinese government focus on capital outflows in China.”

“While growth will decelerate from 2017, 2018 will still show respectable growth (driven more by mass) and long term secular growth drivers are still in place,” the report added. “In 2018, we expect total GGR to grow 10 per cent year-on-year, and VIP GGR and mass GGR will grow eight per cent year-on-year and 11 per cent year-on-year respectively.”

Share via
Copy link