Macau casinos seek to replace junket revenues amid crackdown, industry uncertainty
Macau casinos seek to replace junket revenues amid crackdown, industry uncertainty. VIP gaming rooms, which made up about a third of Macau’s gaming revenues in 2019, have taken a big hit following the arrest last month of Alvin Chau, head of Suncity. Since the arrested, shares of Wynn Macao have plunged about 23%, Sands China has fallen about 13%, and MGM China dropped 20%. The future of the industry is in mass and premium mass recovery. It will imply controlling COVID-19. The pace of recovery in late 2021 and 2022 depends on COVI outbreaks and travel restrictions coming down.
Beijing has been cracking down on cross-border gambling since 2020. The current junket operator licenses are set to expire by December 31. However, VIP rooms will still be allowed to operate in Macau. The gaming law revision public consultation document included VIP gambling promotion.