Macau’s VIPs spread their wings

Macau’s reputation as the go-to destination for casino VIPs is under threat as facilities improve in other regional destinations that offer lower tax rates and better junket margins. According to Union Gaming, Macau leaked $1.4 billion of VIP gross gaming revenue (GGR) last year to its four geographically closest rival markets – Cambodia, Korea, Philippines and Vietnam – with Cambodia and Vietnam accounting for $1 billion of that amount. This year, the total lost by Macau to the quartet is predicted to rise to $2.6 billion and the competing territories could generate VIP GGR totalling $6 billion within the next two years. The four neighbours enjoyed a 57 percent rise in VIP GGR in 2018 in comparison with a modest 10 percent rise in Macau, where the total is expected to slump by 15 percent this year before recovering slightly in 2020. It is a striking development for operators. However, with an...

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