DICJ junket regulations confirm no “V-shaped recovery”: WF

Wells Fargo says the Macau gaming regulator’s introduction of regulatory guidelines for junket operators confirms that the sector will not see a “V-shaped recovery.”

Macau’s Gaming Inspection and Coordination Bureau, which controls procedures for issuing licenses to junket promoters, said it would soon be introducing new transparency guidelines. This came in response to the junket Dore Group scandal in which an ex-cage manager conducted unauthorised transactions and stole millions of HK dollars from the company.

“In our view, this is another indicator the policy settings within and towards Macau are likely to remain tight – which is a key reason we don’t expect a V-shaped recovery.”

WF checks suggest weaker than expected September gross gaming revenue, down 32 percent to 34 percent year-on-year. 

“This is despite the benefit of China’s new Victory holiday on 9/3 this year. We expect Macau revenues to remain volatile given a lower base of business in both, VIP and premium mass.”