Casino operator Wynn Macau has upped its commission rate to junket operators by 2.5 percent, in an attempt to claw back its share of the rolling market in Macau.
This is according to a report from analysts at Credit Suisse, which was published on Wednesday.
“As per our checks, Wynn lifted junket commission from 40 percent to 42.5 percent effective 1 March, matching its Cotai peers,” said the analysts.
The raise is the first increase in 14 years, and is likely due to a fall in VIP market share, which went from 23 percent in the first quarter of 2019 to 20 percent by the end of 2019, and 16 percent at the end of January.
The Macau market has been battered by low visitation lately, due to heavy restrictions on mainland residents visiting Macau.
“As volume shrinks, junkets will naturally allocate business to operators offering a higher commission,” said the analysts.
Credit Suisse believes that Wynn Macau may gain VIP share in the near term, despite a lower margin.