Macau

Las Vegas Sands Chairman and Chief Executive Officer Sheldon Adelson said he expects a recovery in Macau’s VIP market in the next two months, presenting a rosier view for the high-roller sector of the market than most analysts following the sector.

The Neptune Group, which owns and operates VIP rooms in Macau, said net profit in the year ending June 30th, 2014, declined 9 percent, but it remains “cautiously optimistic” about the territory’s junket business.

Macau’s Health Bureau says a total of 28 casinos have applied to set up 62 smoking rooms on their mass gaming floors, but so far the approval procedure has only been completed for 12, local media reports.
The bureau says it will strive to approve the rest by the time the smoking ban comes into force on Oct. 6th.

Macau’s Health Bureau says a total of 28 casinos have applied to set up 62 smoking rooms on their mass gaming floors, but so far the approval procedure has only been completed for 12, local media reports.

VIP revenue in Macau is likely to decline 10 percent year-on-year from 2015 to 2017, leading to intensifying of competition with gross margins narrowing, UBS said in report.
The forecast decline comes against an anti-corruption and money laundering campaign by the Beijing government.
The report, assuming a medium-term negative growth scenario, was for VIP revenue in 2017 to be just 63 percent of 2013 revenue levels, while mass revenue would rise 10 percent year-on-year, with overall gross gaming revenue (GGR) falling 1.0-2.0 percent.

The Occupy Central pro-democracy movement in Hong Kong may have spillover effects for Macau's gaming industry as visitors decide to cancel trips to Macau and Hong Kong due to the protests, a report by UBS Securities said.
Some 15-20 percent of Macau's mainland tourists arrive through Hong Kong. "Some of these visitors might cancel their trip to Hong Kong/Macau altogether due to the current events," the analysts warned, but added most came on package tours and are unlikely to be "high value" customers to the casinos.

VIP revenue in Macau is likely to decline 10 percent year-on-year from 2015 to 2017, leading to intensifying of competition with gross margins narrowing, UBS said in report.

The Occupy Central pro-democracy movement in Hong Kong may have spillover effects for Macau's gaming industry as visitors decide to cancel trips to Macau and Hong Kong due to the protests, a report by UBS Securities said.

Bond prices for Macau’s casino operators have fallen sharply as the corruption crackdown on mainland China spooks investors and deters VIP gamblers.
According to Bloomberg, the decline has been evident across the board, with the yield on Wynn Macau’s notes due October 2021 up 93 basis points in September to touch a record 5.80 percent.
For Melco Crown Entertainment the yield rose to an all-time high of 5.61 percent.
Stocks have also taken a battering, with the six biggest Hong Kong-listed Macau casino stocks sliding 32 percent on average this year.

Workers from MGM Macau have become the latest group to take to the streets of the territory to demand better pay and working conditions, local media said.
A group of employees gathered outside MGM Macau in protests Sunday. The organizers demanded a response to their requests ahead of the China Golden Week holiday, which begins Oct. 1st.
Macau’s casino workers have been stepping up their protests, with employees at SJM Holdings moving on to take industrial action at the group’s casinos.

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