Macau's casinos pin hopes on everyday gamblers after junket shutdowns

Macau’s casinos pin hopes on everyday gamblers after junket shutdowns HONG KONG : Macau’s casinos face a bleak short-term outlook after shutting most of their lucrative gaming rooms catering to wealthy gamblers and as COVID-19 travel restrictions prevent the shift to mass-market customers that they will depend on in the future. The former Portuguese colony that is the world’s biggest gambling hub in terms of money wagered has long relied on the revenue from the VIP gaming rooms where high-rollers placed massive bets. But the Chinese government’s recent crackdown on the junket business, which arranged the transportation, accommodation and the credit necessary to gamble for wealthy clients, is calling into question the financial outlook for casino operators including Wynn Macau, Sands China and MGM China. “The pace of recovery in late 2021 and 2022 depends on COVID outbreaks, travel restrictions coming down, and the key to recovery is to have mass players coming back to Macau at more normal levels,” the analysts said in a note. “The future remains in mass and premium mass recovery.” Junkets, besides extending credit to high-rollers, also operated a shadow banking network that helped players skirt China’s capital outflow rules that limit taking only the equivalent of US$50,000 out of the country in one year.