Macau High Rollers to Bring Less Revenue in Second Half of 2018

Macau is known as the biggest gambling hub in the world and as such it enjoys a lot of attention from players from all four corners of the planet. Probably the most developed feature of the location is the high-stakes gambling offerings it has available for the players, as they boost the progress of the industry and invest a lot of money into the gambling field. However, contrary to the expectations of many, ever since the middle of December 2017 the Gross Gaming Revenue of high rollers has been gradually going down. There are forecasts that this amount is going to go even lower after the month of July.

According to recent information announced by brokerage Sanford C. Bernstein Ltd., the high roller field in Macau is expected to experience a considerable slowing of the growth in the second six months of this year. There have been signs for this towards the end of last year, but the visible consequences are expected to come in the second half of 2018. The downward trend could probably be reasoned by several political and economic factors which could have an impact on mainland China. As it is known mainland Chinese casino patrons make for the larger part of players who participate in high stakes VIP gambling in Macau.

Relatively Slow Growth in the VIP Sector

According to the forecast of the brokerage, the following several months leading up to the summer might see relatively similar revenue rates when it comes to the VIP gambling sector. However, the year of 2018 is expected to see many changes in the regulation of real estate in China, as well as considerable credit tightening and a bigger focus on the capital situation in the country. High rollers based in the mainland are some of the people which are responsible for considerable capital outflow towards the gambling hub. These news does not mean that the field should brace itself for an impact and large losses.

Even though the speed of development might be lower than the previous year, the brokerage still announced predictions that this year will still provide significant growth. When put in figures, this equals some 10 percent growth of the total gross gaming revenue in comparison to 2017, as well as 8 percent growth of the VIP gross gaming revenue. In the meantime, investment bank Credit Suisse published data that the VIP gambling has in fact slowed down last month. High rollers usually account for as much as 30 percent of the earnings of a given casino operator, so it is safe to say that their gambling behavior makes a difference.

The following months are expected to see the results of this forecasts and as the year unfolds high roller gambling is sure to bring food for thought in Macau as casino operators look for ways to attract more VIP players.