Fixing ailing Macau casinos: A few words of experience

Macau industry observers, gaming analysts, and even casino operators are now admitting that the decade-old party has run out of steam, if not over. The “build it and they will come” maxim and its attendant hubris that has characterized the Macau gaming industry since 2003 are now causing deep concern to operators and investors alike. Both VIP and mass revenues are in decline for 22 months, and the much vaunted “stabilization” remains confined to a word in Glosbe, the English-Cantonese online dictionary. What we witness with every quarterly earnings report are platitudes and vacuous statements from board chairmen about how well their company performed amid “challenging circumstances.” Sure, every industry and every region experiences ups and downs, and Macau’s casino industry is no exception. During trying times, company management seeks to put in place certain measures that will minimize downturn damage to staff and shareholders. However, when it comes to...

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