Macau VIP collapse prompts questions over junket system

    Published in: Latest IntelligenceThe collapse in Macau’s VIP revenue has been deeper and more prolonged than most analysts had foreseen, prompting questions as to what’s really behind the downturn and whether the junket system that fueled explosive growth in the gambling hub is still viable.Analysts are warning the days of rapid growth in the high rolling sector may be a thing of the past and see a flat outlook going into 2015. Gross gambling revenue has fallen in each of the past five months, with the 23.2 percent October decline the worst on record. That was hit by a drop of about 37 percent in VIP revenue, according to Wells Fargo Securities.Aaron Fischer, a Hong Kong-based analyst with CLSA, says the VIP market in Macau may have reached a plateau after a decade of rapid growth, rising to become worth an estimated US$30 billion a year.“No one ever expected...

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