Financial News
Written by: Zhang Weilun
2020-11-30 15:55
Last update date: 2020-11-30 15:55
The prospects for the VIP room business of Macau gaming stocks have been bleak.
According to the report by the brokerage Sanford Bernstein, Macau’s VIP lounge revenue is expected to shrink by 4% annually from 2019 to 2023, from 14 billion yuan (USD ‧ the same below) to 12 billion yuan. By 2023, VIP room revenue will account for Local gaming revenue is about 3 points1.
The bank pointed out that the forecast is based on 2019 VIP room business revenue, which accounts for 39% of local gaming revenue, and of the 39.5 million tourists who traveled to Australia last year, about 2% participated in VIP room gaming.
The bank pointed out that the decline in VIP gaming revenue was related to the pressure on funds of intermediaries and the mainland's crackdown on illegal online gaming.
The bank pointed out that the closure of illegal online gambling business has caused some intermediaries to be troubled by investors and depositors seeking to withdraw their capital. At the same time, VIP room customers are also reluctant to interact with intermediaries.
The bank also pointed out that if the intermediary is under financial pressure, it will affect the business development of the local VIP room in the short to medium term.
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