Gaming insights Gaming

More struggles ahead for Macau junkets

Written by Ben Blaschke

Macau may have enjoyed its first year-on-year revenue rise in 27 months in August, but analysts are predicting more tough times ahead for its VIP sector.

Noting last week’s announcement by IKGH that it would close one of its five Macau junket rooms, Union Gaming’s Grant Govertsen said smaller junket operators would continue to bear the brunt of the pain with dozens having already ceased operations over the past two years. However, even the big three – Suncity, Neptune and Tak Chun – face uncertain times.

“We are currently forecasting a market-wide VIP GGR decline of 13% year-on-year in Macau during 3Q16,” said Govertsen, albeit noting that this would represent the sector’s best performance since early 2014.

Neptune also announced recently that it would close one if its rooms at the Venetian, with Govertsen adding, “All of this spells more downside ahead for the VIP segment, the brunt of which we believe will be borne by smaller junkets.”