Brokerage JP Morgan has warned that Macau’s gaming sector could be “un-investable” due to the possibility\u00a0of increased oversight of gaming concessionaires and junket operations.<\/p>\n\n\n\n\n\n\n\n
Macau.- Fears are mounting over the possibility of increased supervision over Macau casinos. <\/strong>Now brokerage JP Morgan has warned investors to remain cautious until it is clear what will happen to concessions.<\/p>\n\n\n\n Analysts DS Kim, Amanda Cheng and Livy Lyu said: “We think\u00a0the sector could stay nearly un-investable until the clarity on the next concession emerges<\/strong>, an event that we view as unlikely in the next six months.\u201d<\/p>\n\n\n\n Last week, reports of a\u00a0possible change in current gaming laws<\/a>\u00a0caused Macau\u00a0casino stocks to fall sharply<\/a>. Sands China saw a 32.51 per cent drop in its shares while Wynn Resorts\u2019 share price declined by 10.85 per cent.<\/p>\n\n\n\n The public consultation on the revision of the city\u2019s gaming law has proposed expanded oversight of gaming tasks, profit appropriation, and the election of\u00a0\u201cdelegates\u201d to Macau\u2019s gaming concessions<\/strong> to allow a \u201cgreater checking\u201d limit on the activity of the gaming firms.\u00a0<\/p>\n\n\n\n Analysts said: “We interpret the\u00a0Government\u2019s surprise announcement as an effective ‘SOE-rization’ of the industry<\/strong>, which makes it difficult to establish a floor for both earnings profile.”<\/p>\n\n\n\n The “state-owned enterprise” (SOE) term is used to describe a company or legal entity that represents a government-controlled company or legal entity that participates in commercial activities.<\/p>\n\n\n\n Ben Lee, managing partner of iGamiX Management & Consulting<\/strong>, has expressed his disagreement with the decision to elect \u201cdelegates\u201d to Macau\u2019s gaming concessions <\/strong>in order to have \u201cgreater checking\u201d on the activity of the gaming firms.<\/p>\n\n\n\n In statements to Asian Gaming Brief Lee said: \u201cThis direct supervision aspect has been puzzling. There\u2019s no way any government representative would be familiar with the commercial and financial transactions and processes that go on in large casinos. <\/p>\n\n\n\n \u201cYou need to think about what they are after, what their intentions are, and what they are looking to supervise.\u201d<\/p>\n\n\n\n He added that the government\u2019s desire for increased supervision may be related to the active promotion of gambling activities in China <\/strong>and referred to Beijing\u2019s crackdown that includes the suppression of entertainment and video games.<\/p>\n","protected":false},"excerpt":{"rendered":" Brokerage JP Morgan has warned that Macau’s gaming sector could be “un-investable” due to the possibility\u00a0of increased oversight of gaming concessionaires and junket operations.<\/p>\n","protected":false},"author":176,"featured_media":23015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"JP Morgan has issued a cautionary note regarding Macau's gaming sector, deeming it \"un-investable\" until clarity emerges on future concessions, citing proposed increased government oversight and potential \"SOE-rization\" of the industry. This regulatory uncertainty, including expanded supervision of gaming tasks and profit appropriation, has already triggered significant declines in Macau casino stock valuations. Industry experts express concern over the practical implications and underlying intentions of such direct governmental intervention.","focusai_entities":"JP Morgan, DS Kim, Amanda Cheng, Livy Lyu, Sands China, Wynn Resorts, Ben Lee, iGamiX Management & Consulting, Asian Gaming Brief","focusai_location":"Macau, China","focusai_target_profile":"ceo_executive (1.0), regulator (1.0), compliance_legal (0.9), operator_casino (1.0), affiliate_publisher (0.7), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Concession Renewal Impact","query":"What specific changes to the concession renewal process are anticipated, and how might these affect the operational continuity and capital expenditure plans of current Macau gaming concessionaires?"},{"label":"SOE-rization Implications","query":"Beyond profit appropriation, what are the full implications of the proposed \"SOE-rization\" on corporate governance frameworks, management autonomy, and the ability of concessionaires to attract foreign investment and talent?"}],"footnotes":""},"categories":[16338,156],"tags":[23911,23906],"class_list":["post-23010","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-regulation-news","tag-gambling-regulation","tag-macau-casinos"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/23010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=23010"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/23010\/revisions"}],"predecessor-version":[{"id":23026,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/23010\/revisions\/23026"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/23015"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=23010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=23010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=23010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Increased supervision over Macau casinos could hurt premium mass market<\/h2>\n\n\n\n