Chinese VIP market is in recovery across Macau, the Phillipines and Australia. This was stated by Morgan Stanley analysts, who met with casino and junket operators in Macau recently. The resurgence has been driven by a solid Chinese housing market, improving junket balance sheets and cash flows providing credit to customers. The Macau gaming tables for VIPs recorded the largest month in three years in October in 2017
According to Morgan Stanley Australian VIP growth is set to continue. Both Star Entertainment and Crown Resorts have both recently posted indications that the high roller drought may be almost over.
Here’s how Morgan Stanley sees the return of high rollers to billionaire James Packer’s Crown:
His recent travels to Macau and feedback from industry contacts confirms that this growth has continued post the trading update and is expected to continue to grow further.
A very large junket provider luring VIPs with free accommodation, travel and other perks recorded their highest rolling chip ever for Melbourne in the month of October 2017, whilst business in Sydney for Chinese VIPs is also reported to be growing substantially on last year.
The view is that visas for Chinese are becoming easier to come by — so the appetite is there for them to travel more and Australia is positioned well to take advantage of this.
Morgan Stanley is forecasting VIP revenue growth of between 14% and 9% for Star Entertainment and Crown Resorts in 2018. Crown in August 2017 posted a 7.5% fall in annual revenue to $3.34 billion, dragged down by fewer VIP players making big bets at Australian casinos. VIP program play revenue in Australia fell 48.9% in 2017.
However, at the October 2017 AGM, shareholders were told Crown Melbourne’s VIP program play turnover exceeded expectations from July.
The Crown Group provides some of the most exquisite casinos you’ll find anywhere in the world and as Aussies are fortunate enough to enjoy the premium facilities offered at Crown Casino Melbourne and Crown Casino Perth. All Crown casinos are open for the public to enjoy, but are special to high-rollers and VIP players that receive extra special treatment, with access to exclusive gaming rooms with higher table limits and personalised service.
(Source: Business Insider News)