JO Hambro: Crackdown on corruption hits Macau casinos

JO Hambro: Crackdown on corruption hits Macau casinos. The corruption crackdown is affecting some major casinos' ability to turn a profit. Take Macau: VIP and junket-rolling chip value declined 3% year-on-year (y-o-y) and 14% quarter-on-quarter (q-o-q). The supposed saviour, mass market gambling, saw revenue growth slowing to 16% y-o-y in the first half of 2014 and further to 13% y-o-y in July 2014, as compared to 32% last year. Table yields (the amount of money a casino makes per table per day) had risen from US$4,600 in the first quarter of 2010 to S$12,900 in the first quarter of 2014, but have since fallen marginally in the second quarter. Click here to read about four trends placing pressure on China's attempts to rebalance growth. (VIEW LINK)