Inside Asian Gaming

IAG SEP 2020年9月 亞博匯 42 I n2013,Macau’s VIPgaming sector recordedgross gaming revenue of MOP$238.54 billion (US$29.86 billion) – the ninth straight year of record revenues since such data was first recorded by the Gaming Inspection and Coordination Bureau back in 2005. The figure represented 65.9% of Macau’s total GGR for the year of MOP$361.87 billion (US$45.3 billion), only slightly down on the 72.9% of gaming revenue VIP contributed two years earlier. Both are records unlikely to be broken anytime soon. Since 2014, the VIP sector has seen its influence gradually subside, dropping below 60% for the first time in 2015 and from 54.7% in 2018 to an all-time low of 46.1% last year. Heavily impacted by China’s 2014 anti-graft campaign, which effectively slashed the pool of high-rollers coming to Macau, junkets and operators have not only seen their VIP volumes subside, but have also endured a lengthy period of consolidation – from 235 licensed junkets in 2013 to 141 three years later and just 95 as of 2020. Likewise, casino operators have gradually shifted their focus away from the once endless riches of the VIP biz towards the higher-margin mass and premium mass segments, both boosted by growing visitation to the Macau SAR (reaching a record 39.4 million in 2019). Yet, as all eyes look forward to 2021 and, hopefully, an end to the COVID-19 pandemic that has left the global gaming industry rattled, any suggestions that the junket industry is on its last legs couldn’t be further from the mark. “The industry is hurting right now, and junkets are no different, but rest assured it is VIP that will drag us back,” says Niall Murray, Chairman of IR consultancy firm Murray International Group. Often demonized and certainly misunderstood, Macau’s junket industry has a long and sordid history that has sparked caution from regulators in Nevada and Singapore, and most recently Australia. But while some jurisdictions shy away, Macau has embraced the troubled beginnings of its junkets – utilizing past experience to strengthen regulations while simultaneously establishing itself as a global economic powerhouse. And the numbers don’t lie. Even accounting for the challenges it has faced in recent years, Macau’s IN FOCUS