Good morning. Suncity is confirming that the loss of support from its CEO Alvin Chau will create a significant dent in group revenue, while analysts continue to assess the potential impact on the wider market.
As the fallout from the arrest of Chau and the Suncity Group VIP room closures continues to reverberate throughout the industry, Asia Gaming Brief will be bringing you a special webinar discussing the implications for junkets, the VIP market, and online gambling around the region on Thrusday, December 9th. Please stay tuned for further details.
What you need to know
- Macau’s gross gaming revenue was up only slightly from November 2020, reaching MOP6.7 billion (US$838.8 million) in 2021, but was a 54.6 percent improvement from October.
- About 10 percent to 20 percent of Macau’s premium mass business has relationships with junkets and some may potentially be lost in the fallout from the Suncity case: J.P. Morgan.
- Suncity Group Holdings said it’s suspending the operations of a division, which made up 17.4 percent of revenue in 1H21, following the loss of support from CEO Alvin Chau.
- MGM Resorts International CFO Jonathan Halkyard says the company does not believe the most recent blow to the junket industry will have a dramatic impact on MGM’s operations in Macau.
On the radar
- Sands China to pay one-month bonus, other incentive, to 99% of staff
- Scientific Games continues to expand in digital with ELK Studios buy
- Aristocrat on track for Playtech takeover following proposed Finalto sale
What the papers say
- Other Macau junket brands named in China gambling probes since 2020
- Labour Bureau monitoring Suncity worker situation after VIP room closures
AGB Intelligence
ON THE GROUND
Macau’s visitors shopping more than gambling
Macau’s rising visitation is having an impact that is roughly three times larger on retail sales than on gambling revenue. In this week’s On The Ground series, IGamiX Management & Consulting’s casino projects director Eric Coskun provides some insight into the latest data trends. Part of the reason is the changing demographic, with many more and younger women. They are also “proxy shopping” to fill orders back in China to fund their trips.
Industry Updates
- Pragmatic Play’s Gates of Olympus wins EGR game of the year award
- SJM launches responsible gaming initiatives in support of Macau government campaign
- 1XBet shortlisted for five EGR Nordic awards
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