Gaming: Macau VIP More Broken Than Ever - B. Riley

November 29, 2021 7:21 AM EST
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B. Riley analyst David Bain has weighed in on the latest developments in Macau after Alvin Chau, the CEO of the largest gaming promoter Suncity, is wanted by police for a “mainland illegal gambling charge.”

Macau’s VIP gambling got another blow after the Court of Final Appeal upheld a court verdict citing Wynn Macau (NASDAQ: WYNN) and junket, Dore Entertainment, both responsible for HK$6 million owed to a VIP player.

“VIP accounted for ~32% of Macau gaming revenue versus nearly half in CY19 and the former driver of GGR before that. We see tough sledding for VIP from here, yielding a more aggressive structural shift away from VIP in Macau than most expected,” Bain said in a client note.

The analyst also discussed other challenges facing Macau gaming, such as concessions expiring in June next year and COVID sensitivity. Although Bain is bullish on Macau stocks long-term, he sees “significant” near-term issues.



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