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The casinos in Macau are registering low profits from high rollers due to the anti-corruption campaign by the Chinese government. However, if casino managements are to be believed, the revenue is likely to rise in the coming few months.
Corruption crackdown is lowering casino profits
The Chinese government has taken tough measures to control corruption in the country and gambling lovers are under fire along with officials suspected of corruption. The anti-corruption campaign has made the presence of high roller players rather negligible at the Macau casinos.
The casinos rely heavily on VIP money to generate profits. In their absence, many casinos are thinking of shutting shop for good. According to some casino managers, if high rollers continue to keep away from Macau then there is no way to predict where the Macau gambling industry will be headed after a few months. Big casinos can afford to wait longer and see how it all plays out. As of now the big gamblers are headed to other casinos around the world. They find it safer to play big at casinos that are not directly under the watchful eye of the Chinese government.
Everyone under fire
Junket operators have become part of the anti-corruption drive as they are contacted by officials to gather information related to casinos. They have been allotted the task of bringing big money players to the casino and looking after their needs during their stay at the casinos. However, they do not seem optimistic about big casino business any more. Many junket firms have shut down since the beginning of this year.
It is the VIP money that brings big profits to casinos. It was reported that last year two-thirds of revenue for Macau gambling industry was brought in by high rollers. The figure is reportedly way bigger than the Las Vegas revenue.
However, the government believes that it is still helping the Macau gambling industry in growing. Macau is the only place in China where gambling is legal. However, industry insiders say that the government is not helping anyway by forcing the junkets to close down.