The boss for prominent Asian junket operator, Suncity Group, has reportedly predicted that Macau could see an up to 20% decline year-on-year in fourth-quarter aggregated gross gaming revenues to around $7.79 billion.
According to a report from GGRAsia, Alvin Chau Cheok Wa (pictured) made the forecast via a story published earlier today by the Chinese-language Hong Kong Economic Journal newspaper and additionally forecast that the enclave’s casino industry could record as much as a 15% comparable drop for the preceding third-quarter.
Chau’s prophesy comes after Macau chalked up a 0.46% year-on-year decrease in first-quarter aggregated gross gaming revenues to around $9.43 billion alongside a slightly steeper 0.48% second-quarter diminution to just over $9.08 billion. To make matters worse, July’s figure was 3.5% lower at $3.02 billion while the slightly over $3 billion recorded for August had represented a comparable deterioration of 8.6%.
GGRAsia reported that Chau is Chief Executive for the privately-held junket firm while additionally serving as Chairman for Hong Kong-listed casino operator, Suncity Group Holdings Limited, which holds a significant stake in Vietnam’s under-construction Hoiana development. He also explained that Suncity had recently seen a decline in the frequency of VIP clients visiting its Macau venues along with an associated fall in the numbers of such players seeking credit.
Chau noted that high-value players who had been granted credit were now taking longer to repay their debts due in large part to a recent depreciation of China’s yuan currency when compared with Hong Kong and United States dollars. He additionally purportedly cited the slowing Chinese economy and recently-reinforced rules on capital flight as factors behind his prediction of decelerated revenue figures.
Quoting figures from Macau’s Gaming Inspection and Coordination Bureau regulator and GGRAsia reported that the city had experienced a 15.6% year-on-year decay in second-quarter aggregated gross gaming revenues from baccarat to approximately $4.28 billion. It furthermore detailed that the enclave’s casino industry had seen first-half VIP takings slip by 14.5% when compared with the same period in 2018 to about $8.89 billion while the overall six-month tally of approximately $18.51 billion had represented a contraction of about 0.5%.