Macau Business Daily has quoted Union Gaming analysts Grant Govertsen and Felicity Chiang as saying the casino gaming industry is suffering from a VIP gaming slowdown, mainly caused by Beijing’s anti-graft crackdown, and also because the mass market has been growing at a slower than expected rate:
“The VIP segment remains weak, which we believe is driven by a confluence of factors with the largest driver being the broader PRC anti-corruption crackdown”
They believe a recovery may only surge in early 2015, despite a strong VIP showing in the coming October holiday period that may translate into a false expectation of recovery.
However, the mass market has been growing with the Union Gaming analysts believing it is reaching the mid to high-teens, as happened during the month of July:
“We believe mass [market] is being impacted by: World Cup as some segment of customers stays at home and are ‘reloading’ before coming back to Macau; general fatigue as it has been more than two years since any new product [was introduced] in Macau; pockets of economic weakness; signs of a changing customer demographic with a more-casual gambler filling rooms that heretofore were filled by traditional gamblers.”
The World Cup effect is only expected to finish about Golden Week in the first days of October when three days of paid holiday are given and the surrounding weekends are re-arranged so that workers in Chinese companies can have seven continuous days of holiday.
To read the whole article, Punters reloading for October, go to the website of the Macau Business Daily. In addition, check out: Macau Visitor Numbers Will Keep Growing (GGRAsia)
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