High Rollers (VIP) whales
jan25
Crackdown on junkets ‘very positive’, illicit online gambling a rising threat: Vickers
By Newsdesk
Risk mitigation consultant Steve Vickers has praised the authorities’ crackdown on junket activities in recent years but warns that new risks are emerging, particularly from illicit online gambling.
“The moves against the junkets were timely and have been mostly effective, so that’s very positive,” Vickers said on the sidelines of a business luncheon held on Thursday by the British Chamber of Commerce in Macau.
The former head of the Hong Kong Police Criminal Intelligence Bureau noted that “for many years, the junkets supported triad societies and were heavily involved in siphoning off funds from the gaming system, which ultimately did not pass through Macau’s tax system.”
In late 2021 and early 2022, the city’s top junket operators—Suncity’s Alvin Chau and Tak Chun’s Levo Chan—were arrested and later sentenced to 18 and 13 years in jail, respectively, after being found guilty of illegal gambling, organised crime, and other charges.
“I spent my life fighting organised crime, and being able to knock out one of their big sources of revenue, I thought, was good,” he said, before stressing that authorities should not rest on their laurels. “The problem is like that whack-a-mole game—you hit one down, and another one pops up.”
https://www.macaubusiness.com/crackdown-on-junkets-very-positive-but-illicit-online-gambling-a-rising-threat-vickers/
jan25
So far in January, Macau has seen a lower wager per premium mass player and a lower number of “whales” – players that have a bet size of HKD100,000 (US$12,846) or more – compared to the same period in January 2024. That is according to bank Citigroup’s January survey of this segment of play, drawing comparison wiith its equivalent 2024 survey.
Referring to a seasonal holiday China’s State Council designates on the Chinese mainland, Citigroup stated: “Chinese New Year [CNY] Golden Week is coming earlier this year (January 28 to February 4 versus February 10 to February 17 last year).”
As a result, for the institution’s latest monthly bet survey, “we saw some signs of… pre-CNY slowdown… that we did not see in January 2024,” noted analysts George Choi and Timothy Chau.
They said the “most obvious” indicator was “the lower number of whales seen,” i.e., 24 this time versus 27 a year ago, and “the lower wager per player,” namely HKD20,160 for this survey, relative to HKD21,581 in January 2024.
Nonetheless the premium mass wager aggegate observed by Citigroup this time was up year-on-year, at HKD12.8 million, which it said was around 11 percent higher than the 2024 January review. That total wager amount was spiked by a circa 19-percent rise in the number of premium mass player count, which reached 636 as of the institution’s latest monthly survey.
Citigroup ranked Macau casino operator Sands China Ltd top in its January premium mass survey, with a circa 28 percent market share of industry wager observed by the institution. Market rival Galaxy Entertainment Group Ltd was adjudged to have a circa 27 percent market share.
“Wynn [Macau Ltd] seems to have lost some share [of total premium mass wager] on our count, likely due to the major renovation works at Wynn Encore,” noted Citigroup’s analysts, referring to Wynn Macau’s downtown property in Macau peninsula.
As of its latest survey, Citigroup also concluded that although it saw “fewer whales” on a year-on-year basis, the whales that it observed “wagered significantly more” versus a year ago.
“Average wager per whale of HKD195,000 was 37 percent higher than that of January 2024 (HKD142,778),” wrote the Citigroup analysts.
They added: “The HKD1 million-whale that we saw at the Londoner [Macao] certainly helped…Even if we remove this outlier from the calculation, the average wager per whale would still have been higher by 12 percent.”
Citigroup maintain its forecast for Macau January casino gross gaming revenue (GGR) to reach MOP19.0 billion (US$2.37 billion), which would be a circa 2-percent decline year-on-year. Smoothing the performance across January and February combined, Macau’s casino GGR would be likely to register year-on-year improvement, the institution suggested.
https://www.ggrasia.com/fewer-macau-whales-sighted-pre-cny-citi/
dec24
A new
study examining VIP players’ gaming motivations at Macau’s integrated resorts
has found that the ‘awe experience’ significantly enhances the perception of
gaming attractiveness.
The
research concludes that ‘intrinsic gaming motivations, extrinsic recognition
gaming motivations, and extrinsic integrated gaming motivations all
significantly and positively influence the awe experience of gaming, with
intrinsic motivations exerting the most substantial impact.’
Additionally,
the study highlights the mediating role of the awe experience in connecting
gaming motivations to the perception of gaming attractiveness.
Published
in the latest edition of Macau Polytechnic University’s (MPU) Global Gaming & Tourism Research, the study is co-authored by Ji
Chunli from the Center for
Gaming and Tourism Studies, Zhang Songlin from the Business School of Shaoxing University, and
Wong Waineng from Hizzard Public Health Technology.
The
research team notes that gaming activities of casino players are likely
influenced by a variety of motivations, rather than just one. While different
motivations are at play, some may have a stronger impact than others. Moreover,
these gaming motivations can lead to complex psychological states for the
customers.
Scholars
explain that ‘’some researchers view the experience of awe as a complex
emotion, considering it a positive feeling. The awe experience is an emotional
response triggered by massive perceptual stimuli, which may include elements of
positive emotional states, as well as a reduction in self-awareness and a sense
of meaning.
‘Up to now,
there has been no consensus on the definition of the awe experience, but it is
seen by some scholars as a peak, extraordinary, or optimal experience that
dramatically influences the individual.’
Some
psychological studies suggest that awe experiences can occur in many contexts.
In this study, it is posited that regardless of the type of psychological
motivation driving VIP players, their gaming activities at integrated resort
casinos will trigger positive emotions due to the overall environment,
atmosphere, and the exceptional services and experiences provided to them.
This, in turn, induces a psychological state of awe.
The
research team collected a total of 315 valid questionnaires from November 28th,
2023, to January 5th, 2024.
Study
context
The
research team considers the study of VIP players’ motivations to be still
important, despite the significant decline in Macau’s VIP gaming revenue, which
signals a transition to a “new normal” for the industry.
The
research team indicates that, excluding revenue from premium mass baccarat, the
share of Macau’s VIP baccarat gross gaming revenue (GGR) in total baccarat gross revenue dropped from
52.8 percent in 2019 to 29.4 percent in the first quarter of 2024. When premium
mass baccarat revenue is included, this proportion increases, highlighting the
continued importance of VIP players to Macau’s integrated resort casinos.
Meanwhile,
scholars point out that as integrated resorts shift away from reliance on
junkets to directly engage with premium and mid-tier players, gaming
concessionaires must adopt new strategies.
‘These
strategies include gaining a deeper understanding of these players, building
more effective relationships, and maintaining strong connections to sustain
competitive advantages.
‘VIP
players should not be viewed as one-time patrons but as valuable, long-term
contributors. Concessionaires need to establish enduring relationships with
them, deriving greater value from their gaming activities. To achieve this,
operators must understand how VIP players perceive gaming’s appeal and the
psychological factors driving their participation.’
Management
insights
The
research team highlights several key insights for management. Given the
importance of VIP customers in the gaming industry, businesses should implement
targeted segmentation strategies to understand the unique needs of various
market segments based on gaming motivations.
The study
demonstrates that both intrinsic and extrinsic motivations influence VIP
customer behavior. Therefore, businesses should offer a balanced mix of gaming
activities that appeal to intrinsic motivations, such as skill and strategy, as
well as extrinsic incentives, like rewards and perks. This approach will help
address the diverse motivations of different customer groups.
Furthermore,
the positive impact of the ‘awe experience’ on the perceived attractiveness of
gaming suggests that businesses should incorporate emotional marketing into
their core strategies.
By creating
awe-inspiring moments, businesses can significantly enhance customer engagement
and loyalty. Offering extraordinary experiences—such as high-end entertainment,
interactive activities, and unique gaming environments—can evoke a sense of awe
and elevate the appeal of gaming.
Additionally,
‘designing activities and environments that trigger positive emotional
reactions will improve the overall customer experience, leading to higher
retention rates and positive word-of-mouth promotion.’
https://agbrief.com/intel/deep-dive/05/12/2024/study-targeting-vip-players-highlights-the-substantial-impact-of-the-awe-experience/?utm_source=Asia+Gaming+Brief&utm_campaign=62b2152c74-AGB%3A+%2302041+Friday%2C+06th+December%2C+2024&utm_medium=email&utm_term=0_51950b5d21-62b2152c74-%5BLIST_EMAIL_ID%5D&ct=t%28AGB%3A+%2302041+Friday%2C+06th+December%2C+2024%29&goal=0_51950b5d21-62b2152c74-%5BLIST_EMAIL_ID%5D&mc_cid=62b2152c74&mc_eid=31e20475e6
https://www.mpu.edu.mo/research/en/ggtr_serial_10.php
nov24
Citigroup said it observed in its November survey of Macau casino table play “the largest whale ever” since it began conducting such monthly reviews in 2017. That was during a “supposedly slow month,” stated analysts George Choi and Timothy Chau.
The so-called “player of the month” had wagered HKD2.2 million (US$282,607) at the Signature Club in the Epic Tower at Studio City, a property majority-owned by Melco Resorts & Entertainment Ltd.
The amount seen was about 18.0 percent of the total value of bets observed in the latest survey, at HKD12.2 million. The particular player’s outlay included “HKD200,000 on ‘Lucky 7,” a side bet option.
The player was “the largest whale we have ever witnessed,” added the Citigroup analysts. The institution defines “whales” as players that have a bet size of HKD100,000 or more.
The bank also suggested Melco Resorts was “gaining share in premium mass” in Macau. At the time of the casino company’s third-quarter earnings a fortnight ago, a number of analysts had mentioned erosion of market share during the reporting period.
The aggregate of market-wide wagers observed in the November survey was up 29 percent year-on-year, to HKD12.2 million, driven by “player quality and quantity improvements,” stated Citigroup.
Players termed “premium mass” amounted to 514, up 21 percent on the November 2023 survey, said the bank.
“This implies that wager/player, a gauge of player quality, improved 7 percent year-on-year, to HKD23,706,” wrote its analysts.
The number of whales seen rose to 21 in the November survey, from 18 in the prior-year observation period.
“More importantly average wager per whale of HKD268,381 was 73 percent higher versus November 2023,” said the memo.
Though the analysts also observed that the number of players in the market and their aggregate gambling budget, were “not the only… drivers” of casino gross gaming revenue (GGR).
In the Macau market, other factors included deployment of so-called ‘smart tables’, “which will increase game speed velocity,” and “introduction and promotion of new side bets, which will increase hold rates,” added the analysts.
Citigroup said all mass-market baccarat tables it observed at Galaxy Macau’s Horizon gaming area were now ‘smart’ as were all such tables seen at Melco Resorts’ Studio City, and Sands China Ltd’s Venetian Macao, and Plaza, as well as the Diamond Club at Wynn Macau Ltd’s Wynn Palace, and that firm’s Wynn Encore downtown at the Wynn Macau property.
MGM China Holdings Ltd was one of the earliest exponents of smart tables in the Macau market.
For the November Citigroup survey, “we also saw smart tables” at “grind mass areas,” stated the bank’s analysts, mentioning “24 at Wynn Macau, 40 at Wynn Palace, and 133 at Galaxy Macau,” the latter the flagship Cotai property of Galaxy Entertainment Group Ltd.
Craig Billings, chief executive of Wynn Macau Ltd’s parent, Wynn Resorts Ltd, said on the group’s third-quarter earnings call, that rollout of smart tables in its Macau business would be completed by Chinese New Year, which is at the end of January 2025.
Regarding side bets, Citigroup stated its November survey noted “side bet expert tables” at the Venetian Macao, offering bets on respectively ‘6s’-based and ‘7s’-based, side bet games.
“We believe this latest creative move by Sands China will lure players to wager more on side bets,” the analysts stated.
https://www.ggrasia.com/best-whale-since-macau-monthly-survey-began-in-2017-citi/
out24
Macau and Cambodia – two Asia-Pacific casino markets among the most reliant on Chinese visitors – are both feeling the absence of mainland VIP players, says an S&P Global Inc macro-view report on gaming demand in the region.
Another challenge for the regional casino and tourism industry is that “pent-up demand” among Chinese people for travel, seen immediately after pandemic restrictions were lifted in early 2023, was “likely on a diminishing trend,” said the institution, adding that a “two-speed recovery” was “taking shape across the gaming tables of Asia Pacific”.
More specifically for Macau and Cambodia gaming, “we do not expect GGR [gross gaming revenue] to recover to pre-pandemic levels over the next 12 to 24 months,” wrote analysts Shawn Park, Aras Poon and Tristan Ong.
Though they also observed: “Markets that had limited exposure to junkets – Singapore, Malaysia, Australia, and New Zealand – will likely reach or even surpass pre-pandemic GGR levels.”
https://www.ggrasia.com/macau-cambodia-most-feel-loss-of-china-vip-play-sp/
out24
Gross gaming revenue (GGR) came in at 55.6 billion patacas (US$6.9 billion) for the third quarter of this year, with mass baccarat making up 61.3 percent of the total, according to new data from the Gaming Inspection and Coordination Bureau.
GGR was down slightly compared with the first two quarters of the year, which industry news platform Inside Asian Gaming attributed to the ongoing decline of the VIP baccarat segment, due to a government crackdown on junket operators and the subsequent reduction of high-rollers gambling at local casinos.
VIP baccarat totalled 13.08 billion patacas (US$1.63 billion) for the quarter, up 11.2 percent year-on-year but down 57.9 percent when compared with the same quarter in 2019. The game made up 43.8 percent of Macao’s total GGR in 2019, but is currently tracking at less than a quarter.
https://macaonews.org/news/business/macau-gross-gaming-revenue-third-quarter-2024-macao/
out24
VIP baccarat revenue in Macau for the third quarter of 2024 was just under MOP13.08 billion ($1.64 billion), accounting for 23.5 percent of the total gross gaming revenue (GGR) of nearly MOP55.6 billion ($6.95 billion) during the period.
This data was released on Wednesday by the Gaming Inspection and Coordination Bureau (DICJ), the city’s casino regulator.
In the VIP segment, third-quarter revenue decreased slightly by 1.7 percent compared to the previous quarter but rose by 11.1 percent year-on-year, up from MOP11.77 billion ($1.47 billion) in the same period last year.
During the three months leading up to September 30th, revenue from mass-market baccarat reached nearly MOP34.09 billion ($4.26 billion), reflecting a sequential decline of 1.6 percent and accounting for approximately 61.3 percent of the market share.
However, mass-market baccarat revenue saw a year-on-year increase of 14.5 percent, compared to MOP29.77 billion ($3.7 billion) in the previous year.
https://agbrief.com/news/macau/16/10/2024/macau-vip-segment-accounts-for-24-of-3q24-ggr-regulator/?utm_source=Asia+Gaming+Brief&utm_campaign=0d28ee4f78-AGB%3A+%2302005+Thursday%2C+17th+October%2C+2024&utm_medium=email&utm_term=0_51950b5d21-0d28ee4f78-%5BLIST_EMAIL_ID%5D&ct=t%28AGB%3A+%2302005+Thursday%2C+17th+October%2C+2024%29&goal=0_51950b5d21-0d28ee4f78-%5BLIST_EMAIL_ID%5D&mc_cid=0d28ee4f78&mc_eid=31e20475e6
set24
Banking institution Citigroup says the number of ‘whales’ in the Macau market – defined as players that have a bet size of HKD100,000 (US$12,842) or more – and the amount wagered by them so far this year have “exceed” the levels seen in full-year 2023.
“Year-to-date, we saw 228 whales wagering a total of HKD43.3 million. These stats exceed that of financial-year 2023, at HKD39.7 million from 224 whales,” stated Citigroup following its September premium mass table survey in Macau.
“Average wager from ‘players of the month’ in the year-to-date was HKD655,000, circa 43-percent higher versus financial-year 2023’s average of HKD457,000,” wrote analyst George Choi.
He added: “Their spending trend seems to be accelerating, with the average over the past five months being higher at HKD728,000.”
According to the analyst, the data compiled so far this year “continue to show that these affluent players are still able and willing to spend in Macau, despite the current state of the economy in China”.
The latter was understood to be a reference to consumer confidence on the Chinese mainland, which investment analysts say it has shown a “weaker sentiment” in recent months. Mainland China is the main feeder market for the Macau tourism sector.
https://www.ggrasia.com/macau-whales-spending-trends-accelerating-citi/
ago24
The government’s recent crackdown on unauthorised money exchanges has not led to cutbacks in casinos’ premium mass segment, Inside Asia Gaming (IAG) reports – citing a note from Citibank analysts.
Indeed, analysts George Choi and Ryan Cheung noted that both year-on-year and month-on-month premium mass wagers appeared to be surging during their recent inspection of the SAR’s integrated resorts. The pair said they saw 25 so-called ‘whales’ while in the city, betting as much as HK$600,000 (US$77,000) per hand. Whales are defined as players betting HK$100,000 per hand or more.
“The fact that this happens after the Macao government’s decision to criminalise illegal money exchanges within casino premises means that most players, via legitimate channels, are still able to get their funds to the Macao casinos,” Choi and Cheung said.
VIP customers have traditionally been one of the key customer segments for casino resort operators, with Macau’s casino resorts having built their early successes around their VIP guests.
VIP baccarat revenue once comfortably exceeded 70% of Macau’s gaming revenues, and despite the crackdown in recent years still contributes more than 20% according to DICJ figures. Therefore, whether they be introduced by agents or acquired via direct VIP marketing, VIP customers still have a role to play in the development of Macau’s casino resorts.
To better attract and retain VIP clients, casino resorts typically hire VIP hosts as a key strategy to cater to VIP guests and foster customer loyalty. This strategy is widely adopted in renowned gaming destinations worldwide, including Las Vegas, Macau, Singapore and Australia.
https://www.asgam.com/index.php/2024/06/29/build-trust-they-will-come/
What about the VIP? So, the VIP now I think has been really interesting because you’re going from the junket operator VIP, which is actually quite difficult for the casinos. They weren’t making a hell of a lot of money out of that, because the huge commissions to the junkets.
So this VIP now, a lot of the growth is coming from premium mass and in-house VIP programs. And those programs are very attractive to ex-junket players, they’re moving over to the casino in-house. There’s now heightened competition between the casinos to bring in those players to their property versus the competition – with huge offerings of comps: great suites, great F&B and travel etc, all different options.
And it’s far more profitable for the casino because it doesn’t have to give away of massive commissions to junkets and I believe that a lot of the customers will enjoy it a lot. Given the fact that they will be really well pampered. Oftentimes the junket experience was not of the luxury type. I’ve often seen, in VIP junket rooms, the junk operator getting takeout food brought in and putting it on our fancy plates to keep their costs down.
Macau has had 20 years of the past concessions and sub concessions, and then we’re now one whole year under the new gaming licenses. So, we do have these legacy players. It’s not like Macau is a fresh new market that’s never been explored before.
Basically, those players, a lot of them are there and have been there for a long time, though, and didn’t want to be recognized. We realized in some of the operations over the years that certain players did not want to join our VIP programs. They didn’t want to be identified.
And if they had their player cards, they would discard them before they returned home. There were great incentives there, they would get percentage, cashback – or comps, I should say. But (with) a very low percentage in some of our premium mass areas, offers were taken up with these players. So, for example, talking about maybe 7 percent of the players in the premium mass areas were taking up the VIP cards. Now, I think that’s changing.
There is also a change in terms of how they can get lines of credit as well because junkets are no longer allowed to provide lines of credit to the customer. So, only the casino can do that. It’ll be interesting to see how that then affects everything moving forward.
I think there’s a lot more transparency now. And I believe that mainland China, and their policy with issuing of visas, will change significantly now that the junkets have been taken out of the picture. I think they’ll feel there’s a lot more control, there’s a lot more regulation. And they feel far more comfortable with their citizens coming and having a leisurely gambling experience, as opposed to some extreme gambling experiences that were witnessed with some of these junket customers.
Wang Changbin, director of the Centre for Gaming and Tourism Studies at Macao Polytechnic University, says that Macau’s gaming industry is unlikely to recover to pre-COVID levels, as mass market growth is improbable to fill the gap in GGR from the VIP segment.
out23
What the return of China’s high rollers to Macao means for Wynn Resorts
https://www.cnbc.com/2023/10/19/what-the-return-of-chinas-high-rollers-means-for-wynn-resorts-.html
out23
INSPIRE Entertainment Resort will continue to focus on the VIP market, even as all Asian gaming operators aim to get a piece of Chinese outbound tourism. The property’s newly-promoted President Chen Si tells AGB that EBITDA returns are only expected within two years, but that synergy between Incheon will drive ongoing growth down the road. Meanwhile, hopes are to open soon, pending government approvals.
out23
Vietnam’s gaming industry will continue to face headwinds as it aims to recover from COVID, with a foreigners-only VIP-centric model, challenged by restraints on tour groups coming in from China, high visitation but low spend by Indian tourists and political uncertainty causing delays and an uncertain investment environment. Expert Ben Lee, fresh off a trip to the country’s main properties, gives us the latest in this week’s Under the Scope.
set23
The casino’s VIP sector is “surprisingly strong due to the return of the junket agents” under a new arrangement to lure high-rollers to the gaming tables.
According to Ben Lee, managing partner at IGamiX, in July, the VIP ratio clawed back up to 30% of pre-Covid 2019 levels, as cited in a report issued by Nikkei Asia.
Gross revenue generated from VIP gamblers surged 41.9% in the second quarter, amounting to MOP12.16 billion.
As the influx of visitors returns, revenues are on the rise in the VIP sector, showing unexpected growth following the city’s crackdown on the previously thriving junket industry.
https://macaudailytimes.com.mo/high-rollers-back-on-gaming-table-as-junket-agents-return.html
set23
Yinzuan Club, a high-stakes table game zone at Macau casino resort Galaxy Macau, has from August been hosting a second licensed local junket, GGRAsia has been able to confirm, based on a site visit and corroboration by industry sources.
The newcomer is Sheng Feng – Sociedade Unipessoal Limitada. In Macau, licensed junkets are officially known as “gaming promoters” and are permitted to provide credit to players for VIP gambling. Sheng Feng had previously been partnering with another Macau operator, MGM China Holdings Ltd, according to industry sources.
Yinzuan Club (sign pictured) is at an upstairs level in the “VIP East” wing of Galaxy Entertainment Group Ltd’s flagship Cotai property, near the Diamond Lobby.
The first junket in that zone – United Promotor de Jogo Sociedade Unipessoal Limitada – started gaming-promotion business there in mid-June.
https://www.ggrasia.com/two-junkets-now-working-at-galaxy-macau-vip-gaming-zone/
ago23
Macau’s licensed VIP gaming promoters, or ‘junkets’, are facing challenges under the city’s more stringent regulatory framework for the sector and China’s “anti-gambling policies”. Sourcing more foreign players is a way for the Macau junkets to cope with the new reality, suggested local gaming scholar Ryan Ho Hong Wai, in comments to GGRAsia.
Mr Ho, of Macao Polytechnic University, contributed to a recently-published academic article in Gaming Law Review, on the current status of Macau’s junkets under the new law regulating their licensing terms and business practices, known as Law No.16/2022.
https://www.ggrasia.com/rules-push-macau-junkets-to-foreign-players-scholars/
ago23
High rollers seem to have their bets back on the games of chance in Macau.
A weekly channel check from Citigroup noted that it has observed 24 whales so far this month – a figure that marks the highest single tally this year amid a weakening economy.
Whales are used to describe players that bring to the table HKD100,000 to 500,000 per hand.
Citigroup analysts George Choi and Ryan Cheung said, “The 31% increase in player count likely implies the return of more casual Premium Mass players as well. However, their return dilutes the average wager per player by 20% in our survey.”
The analysts noted that both Grade-A Premium Mass players and the more casual Premium Mass players remain important for the sector as both players drive the city’s gross gaming revenue recovery during the second quarter.
“The number of Premium Mass players seen during our August 23 survey amounted to 468, compared to 357 last month, representing a 31% monthly increase and only 4% shy of this year’s peak attained in January 2023, which was Chinese New Year Golden Week.
https://macaudailytimes.com.mo/citigroup-high-rollers-back-on-citys-gaming-tables.html
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