According to experts, Macau VIP gambling volume fell 30-32% in the first 10 days of November, in comparison with the same period in 2018.
Macau.- The gaming industry seems to be struggling in Macau as the VIP gambling vertical has decreased. According to two brokerages, the region’s VIP gambling volume dropped 30-32% in the first 10 days of November.
Macau VIP gross gambling revenue had already declined 22.5% year-on-year during the third quarter.
As shown by Sanford C. Bernstein “mass remains robust. It is estimated to have improved by low double-digits of per cent. However, VIP volume is likely to have declined by low 30s of per cent on a year-on-year basis.”
Moreover, Nomura Instinet team said in its own note that “VIP volumes are tracking approximately 30-32% lower versus the same period last year.”
“We estimate that average daily mass revenues were approximately 11-13% higher year-on-year,” analysts Harry Curtis, Daniel Adam and Brian Dobson said.
Long term forecast
While the VIP segment was 70% of GGR in 2011, it has already dropped to 41% in 2018.
“VIP every month/ quarter is oftentimes dependent on the behaviour and luck of a relatively small number of high rollers,” Bernstein assessed. “It’s driven much more by liquidity in China (i.e. flow of credit) and liquidity in Macau (in the junket system),” AGBrief quoted the firm.
“While Mass has had some impact from policies, the policy impacts on Mass have not had as extreme an impact on this segment as on VIP.”