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pacomartin
pacomartin
Joined: Jan 14, 2010
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January 27th, 2014 at 10:03:17 PM permalink
Quote: Tomspur

Next time you head out to Vegas try to quantify those numbers.



Vegas Strip brought in $6.429 billion in gaming revenue in the most recent 12 month period. Overall income on strip casinos including gaming, rooms, food, beverage, and other attractions hovers just over $15.3 billion (up from $15.2 billion last year). Nevada state brings in $11.052 billion in gaming revenue. Visitor volume has not reached a final tally, but should be almost 40 million.

Macau casino gaming revenue (based on only 17 million visitors) surpassed $45 billion last year.

So the idea that less than half the number of visitors should lose 7 times as much money is difficult to wrap your head around. Either there are a lot of suicides, or it is the biggest money laundering operation on the planet.
endermike
endermike
Joined: Dec 10, 2013
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January 28th, 2014 at 6:37:39 AM permalink
Aren't there substanially different stakes on many of the tables? Or at least more consistent whale action?
nickolay411
nickolay411
Joined: Sep 7, 2011
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July 7th, 2014 at 9:08:36 PM permalink
I'll be there later this week. I heard from a friend that it's quite hard to find a minimum of 300 HKD even on the weekdays. That's roughly 38 dollars.

As far as big whale action, I've also heard the Government in Beijing is now making it pretty difficult for government officials to get to Macau. I'm not sure we will see a revenue dip though...
rxwine
rxwine
Joined: Feb 28, 2010
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December 6th, 2014 at 2:58:40 PM permalink
Reuters story on Macua:

Quote:


Junket operators that connect China's wealthy punters to Macau's casinos are waiting as long as a year for gamblers to repay billions of dollars of loans, crippling the business model of an industry that sustains the world's biggest casino center.

These businesses, which lend to high rollers and operate private gambling rooms, normally collect within 30 days and charge interest rates as high as 3 percent per month on overdue balances, according to Macau-based junket consultant Tony Tong.

Now the junkets are on the hook for a surge in bad debts as China's economic slowdown and a crackdown on corruption chase some VIP gamblers away. With little access to credit and slow repayments, the money isn't flowing.

"The business model looks near-broken," said Philip Tulk, an analyst with Standard Chartered in Hong Kong.



More here
http://www.reuters.com/article/2014/11/30/us-macau-debt-idUSKCN0JE00N20141130
Quasimodo? Does that name ring a bell?
pacomartin
pacomartin
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December 6th, 2014 at 8:40:52 PM permalink
Quote: nickolay411

I'll be there later this week. I heard from a friend that it's quite hard to find a minimum of 300 HKD even on the weekdays. That's roughly 38 dollars.

As far as big whale action, I've also heard the Government in Beijing is now making it pretty difficult for government officials to get to Macau. I'm not sure we will see a revenue dip though...



For the first 11 months of the year Macau has brought in 328.2 billion MOP - Macau Pataca (8 MOP to the USD) which is slightly more than the 327.3 billion MOP from last year.

But earnings have been dropping like crazy since February when revenue saw a 40% increase in year over year compared to February 2013. To drop from the high to nearly equal for the year was massive. Every month is doing worse than the previous month.

Gross Gaming Revenue from commercial casinos in USA for 2012 was $37.34 billion. So in some sense it is not shocking that Macau can bring in roughly $44 billion since it is the primary gaming center of a country that is four times the population of the USA.
nickolay411
nickolay411
Joined: Sep 7, 2011
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December 8th, 2014 at 6:10:20 PM permalink
yep i was wrong about it not dipping, definitely dipped. The crackdown affect on goverment officials losing boatloads of cash seemed to work well.

still huge profits like you said. a really huge tourist base from the guangdong province.
ShineyShine
ShineyShine
Joined: Feb 6, 2014
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December 8th, 2014 at 7:43:07 PM permalink
pacomartin and nickolay, yous both seem very knowlegeable and clued up about about Macau. So, in your opinion, what do you think are the long term effects of this? The article mentions a broken business model... are they really that reliant on a few high rolling whales that are defauliting?
andysif
andysif
Joined: Aug 8, 2011
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December 8th, 2014 at 8:55:59 PM permalink
A side note.

Corruption in China is so bad that after a recent fall of a top military official they found so much cash in the basement of one of his house that the "police" cannot count it but had to measure it by weight.

It weights about a ton.

And presumably, that's only the part that he cannot smuggle out of the country.
nickolay411
nickolay411
Joined: Sep 7, 2011
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December 9th, 2014 at 12:33:06 AM permalink
Not just defaulting, but most of the whales were corrupt government officials who are now on a strict watch on entering macau so repeat whale business has totally dropped. Revenue is stabilizing though even without the whales because of the influx of recording breaking tourists and regular players... but revenues could continue to drop, while Macau builds itself a destination resort with entertainment.

Also junket operators are closing as they cant recoup most of the lost money, this will change how the casinos target their valuable players. We might see more traditional host relationships with players in the future as this right now is very non existent.

really i dunno :P
ShineyShine
ShineyShine
Joined: Feb 6, 2014
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December 10th, 2014 at 4:22:27 PM permalink
Quote: nickolay411

Not just defaulting, but most of the whales were corrupt government officials who are now on a strict watch on entering macau so repeat whale business has totally dropped. Revenue is stabilizing though even without the whales because of the influx of recording breaking tourists and regular players... but revenues could continue to drop, while Macau builds itself a destination resort with entertainment.

Also junket operators are closing as they cant recoup most of the lost money, this will change how the casinos target their valuable players. We might see more traditional host relationships with players in the future as this right now is very non existent.

really i dunno :P



Thanks for the reply. It'll be interesting to see how it pans out.

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