Apart from the weak revenues Macau-based casinos have been generating for the last couple of months, the latest reports show that the junket operators were also affected and their number dramatically decreased over the last year.
During 2014, the number of licensed gaming promoters on the territory of Macau were 217. By comparison, their number decreased by 16% and now, they are 183.
The statistics include not only companies registered as junkets but also individuals who have a valid license and are eligible for promoting their services in Macau.
During the Q4, the revenue, generated from VIP players, decreased by 29% YOY. As for the entire year, the downfall was estimated to be almost 11%.
It is a common knowledge that the intensified anti-corruption campaign of the Chinese president is a key factor for the decrease in the number of high roller players who visit Macau-based casino venues.
The Gaming Inspection and Coordination Bureau is to announce the junket operators that are still available. Such an update is released by Macau gaming officials once a year.
A total of 34 junket operators, which used to provide their services during 2014, are no longer available on the Macau gambling market. There were 19 that submitted a request for terminating their licenses; the other 15 did not request a renewal of their licenses.
It does not look like the complicated situation will improve anytime soon. On the contrary – there is an alarming tendency for junkets that used to be profitable to close doors for players. Within the last two weeks, Gold Moon Group and David Group announced that they are closing some of their VIP rooms.
These events made Macau gambling authorities alert and every closure is carefully monitored.
However, Macau officials do not regard the closure of VIP rooms as something out of the ordinary. They believe it is an obligatory phase the further development of the gambling industry should go through. According to them, things will get back to their normal condition once the gambling market adjusts to the new requirements and players’ demands.
Actually, an improvement is expected during the second half of the year. Until then, junket operators and casino owners will have to put up with problematic revenues for the next few months and do their part for remedying the situation.
Meanwhile, members of the government announced that they are about to establish a task force with the aim of raising awareness towards the eventual layoffs that are likely to affect the local gambling sector.