Head of junked operator Suncity Group forecasted that VIP gaming revenues in Macau are likely to drop 15% in 3Q and 20% in the 4Q.
Macau.- Alvin Chau Cheok Wa, head of junket operator Suncity Group, had bad news for the VIP segment’s future. He told the Hong Kong Economic Journal that he expects revenues to drop considerably in the next few months.
The executive said VIP revenues will likely drop by 15% in the third quarter and 20% in the fourth.
Mr Chau explained that VIP mainland gamblers have reduced their lending through intermediaries. Such reaction comes after the Chinese authorities are actively cracking down on credit loans.
The Gaming Inspection and Coordination Bureau of Macau (DICJ) announced that gambling revenue in the city decreased 8.6% in August. The industry was hit by a reduction in demand from high rollers after slowing economic growth due to a trade war between China and the United States.
Revenue during last month’s operations was €2.73 billion, slightly lower than July’s €2.74 billion but below analysts’ expectations of a drop between 2% and 6%.
The DICJ also explained that, although expected, protests in Hong Kong contributed to the bad results in August. However, they were not as impactful as they could have been in August.