Macao in trouble

I read that revenues in Macao are down 23% compared to last year; the claim is that China's anti-corruption drive is providing a chilling effect.

So, is the bloom finally off the Asian rose?

Quote: MrV

I read that revenues in Macao are down 23% compared to last year; the claim is that China's anti-corruption drive is providing a chilling effect.

So, is the bloom finally off the Asian rose?

It's related to the crackdown on junket deals where the "junket" person fronts all the money then of course extorts it from the players if they lose. Playing on real "credit" is always more fun the first time and when you win, but when losses pile up and threats come your way, well even in China I guess the government gets involved. It was going to happen, maybe this is the start of it?

Take your pick:

Fifteen IRS agents stationed there, Anti Corruption successes, Money Laundering issues, Triad Tactics.

Valid points.

Several American companies have invested heavily in Macao properties, indeed their profits from Macao have arguably allowed them to keep the doors open in some Las Vegas casinos during The Great Recession.

I expect this could affect their stock values, certainly if the trend holds up.

Quote: MrV

Valid points.

Several American companies have invested heavily in Macao properties, indeed their profits from Macao have arguably allowed them to keep the doors open in some Las Vegas casinos during The Great Recession.

I expect this could affect their stock values, certainly if the trend holds up.

Both Wynn and Sands have huge hotels under construction there as well as their huge existing properties. China is a big place of course, but like many "emerging" countries, the money is at the top, not in the "middle class" sectors and the poor in China aren't traveling to Macao even by train.