In 2017, the Macau casino industry gathers a staggering $45 billion! Operators believe they will make even more money after that. Revenue collection for the next years is not meeting projections. But this is happening for several reasons. The People’s Republic of China President Xi Jinping has set stringent rules. Among the rules is to end all illegal gambling in Macau. Because of this, the special gaming enclave has several casino crackdowns. The president orders for series of crackdowns. The aim is to end any form of money laundering claims. There is a belief that the VIP junket is taking money out of Macau.
See Why Gambling Analysts Predict Macau; China Will Likely Break All-Time Casino Win Record In 2018
After several attempts by the Chinese authority, things are returning to normal. Today, various casinos are renovating their facilities. Operators are optimistic that soon, they will regain. One of the promising operators is Sands Cotai operator. The owner is using a whopping $1 billion to renovate Sands Cotai Central. Analysts are saying that soon, Macau will boast a milestone yet. Above all, this is possible now that the Chinese government is taking crackdowns at a low pace. Last year’s revenue collection indicates that there is a drop from 2013. The total group from all Macau casinos is $27.9 billion. That is a staggering $17.1 billion less.
Gambling Experts Predict Chinese Casinos To Continue To Flourish
But there is a likelihood of getting back to the 2013 peak. Analysts say that the return of VIP junkets is one reason. The other thing analysts say is more facilities improving customer care. Now, you will walk into a casino in China and enjoy world-class catering. The same experts say that Macau casinos have an increment of 19.5 percent in 2017. This figure runs until November 2017. They assert that it will be good news if things go on the way they are. If they continue until the end of December, China will record $33 billion wins. That will only be $12 billion less 2013 all-time highest.
Ten Bloomberg analysts say that the 2013 highest collection has reasons. The good thing is that the ideas are ready to come back in 2018. Even before we reach 2018, there is the reason for operators to be happy. “VIP junket is making a major comeback. Operators must be aware of that. They need to be ready to welcome VIP clients. They are the reason why there was a high collection in 2013. Moving forward, the market is stable. The drivers are coming back in full force,” says Margaret Huang. Analysts are saying that in the next few years, things are going to be better. The climax will be in 2022 when Morgan Stanely says revenue collection will be $53 billion.
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Margaret says that VIP is a significant driver. But she also means that there are other big boosters. “You shouldn’t be quick to dismiss other substantive drivers. The tourism and hospitality industry plays a major role. It is this industry that brings people to Macau casino sector. The real money gaming sector gets clients from the tourism and hospitality sector. These are main boosters,” Margaret says. She also speaks of online gambling in China. It is another booster.