Casino operator raised its junket commission from 40% to 42.5% in a move that has surprised analysts. <\/p>\n\n\n\n\n\n\n\n
Macau.- Wynn Macau<\/strong><\/em> has raised its junket commission for the first time in 14 years increasing its share from 40% to 42.5%.<\/p>\n\n\n\n The move surprised analysts such as Credit Suisse<\/strong><\/em>\u2019s Kenneth Fong, Lok Kan Chan and Rebecca Law who said. \u201cWe are very surprised by such a move, especially with such minimal demand now.\u201d<\/p>\n\n\n\n However, they pointed to Wynn\u2019s declining junket rolling share, which fell from 23% in 1Q19 to 20% in 4Q19 and which could fall as much as 16% in February.<\/p>\n\n\n\n \u201cAs volume shrinks, junkets will naturally allocate business to operators offering higher commission,\u201d Credit Suisse said in a note.<\/p>\n\n\n\n \u201cWynn\u2019s actions highlight the industry\u2019s difficulty (low revenue and cost pressure as they cannot fire staff) and the cautious outlook,\u201d the note added. <\/p>\n\n\n\n The analysts noted that VIP rolling is down around 80% year-on-year since Macau\u2019s casinos re-opened on 20 February, with mass down by 90%.<\/p>\n","protected":false},"excerpt":{"rendered":" Casino operator raised its junket commission from 40% to 42.5% in a move that has surprised analysts.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Wynn Macau has increased its junket commission from 40% to 42.5%, marking its first raise in 14 years. This strategic adjustment, surprising analysts given current low demand, is attributed to Wynn's declining junket rolling share and reflects broader industry challenges in Macau, including significant revenue declines post-reopening. The move highlights the intense competitive pressure and cautious outlook within the Macau gaming vertical.","focusai_entities":"Wynn Macau, Credit Suisse, Kenneth Fong, Lok Kan Chan, Rebecca Law","focusai_location":"Macau","focusai_target_profile":"ceo_executive (1.0), regulator (0.7), compliance_legal (0.7), operator_casino (1.0), payments_fraud_aml (0.7), investor_analyst (1.0), journalist_researcher (1.0)","focusai_suggestions":[{"label":"NGR Impact?","query":"What is the projected impact of this commission increase on Wynn Macau's Net Gaming Revenue (NGR) and EBITDA margins, considering the current VIP rolling volume declines?"},{"label":"Competitor Response?","query":"How might this competitive move by Wynn Macau influence other integrated resort operators in Macau to adjust their junket commission structures or VIP incentive programs?"}],"footnotes":""},"categories":[160,157,16338],"tags":[29,257],"class_list":["post-4141","post","type-post","status-publish","format-standard","hentry","category-asia-pacific","category-business-news","category-east-asia-news","tag-casino","tag-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4141","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\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=4141"}],"version-history":[{"count":8,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4141\/revisions"}],"predecessor-version":[{"id":777021190,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4141\/revisions\/777021190"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=4141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=4141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=4141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}