Inside Asian Gaming

IAG APR 2022年4月 亞博匯 66 standing revenue stream. With most Macau concessionaires taking the “better safe than sorry” approach and ending all standing agreementswith junket operators, analysts estimate the collapse of the VIP segment will cost operators up to 30% of their GGR and 10% of their annual profit, notwithstanding any amount they can claw back via VIP direct programs. Of course, many would argue that reducing the reliance on junkets and bringing premium play in-house will be beneficial in the long run, however there are more pressing concerns for operators in the meantime – most of them linked to the new gaming law. One source IAG spoke to suggested, “The government clearly has an agenda that is not being disclosed to the concessionaires yet, when you look at their combined actions, is very negative to the existing operators.” The overarching concern is that proposed amendments to the gaming law, including the termsof thesix-monthextension to the current concessions, is all take and no give. The issue of Macau’s 18 satellite casinos is a prime example. Under a key gaming law amendment currently being debated by Macau’s Legislative Assembly, all casino operations must be located inside a premises owned by one of the six licensed concessionaires. Affected parties will be given three years to devise a solution – seemingly to either close their operations or sell the real estate to a concessionaire – however it FEATURES Tak Chun Group's Levo Chan was arrested in January. 德晉集團陳榮煉於本年1月被拘捕。 Not everyone is bullish on Macau’s future prospects, with some sources IAG spoke to openly stating they are downright bearish regarding both COVID recovery and government intentions – both Macau’s and China’s – towards the industry. Certainly, there are some very obvious headwinds facing operators in the near- term, not least of which is China’s war on cross-border gambling. Although many pundits have claimed that this war is primarily aimed at regional gaming destinations other than Macau, the recent arrest of the leaders of Macau’s two largest junket operators, Suncity Group’s Alvin Chau and Tak Chun Group’s Levo Chan, has effectively ended a long-