Investors’ concern about a possible crackdown on illegal cross-border fund flows and its potential impact on Macau’s gross gaming revenue (GGR) is likely ‘overdone’, brokerage firm Citigroup has said.
In a recent update, analysts George Choi and Ryan Cheung noted that gaming demand in Macau is showing improving trends in July, despite the action taken to curb illegal money exchange activities that began in June.
“We continue to believe that most players in Macau have their own legitimate ways to get their funds over to Macau, sufficient for them to bet as much as HK$1 million/hand,” the analysts wrote.
Earlier in June, China’s Ministry of Public Security urged security forces, not only in Macau but also on the Chinese mainland, to strengthen cooperation in clamping down on illegal money exchange in Macau.
The so-called ‘money changers’, present around the city’s casinos, have been identified as a key method for moving funds across different jurisdictions, particularly between the Chinese mainland and Macau.
Based on Citigroup’s observations, the total wagers of the premium mass segment surged by 34 per cent year-on-year to HKD12.2 million (MOP12.6 million/ US$1.56 million) in July, driven by a 61 per cent increase in the number of premium mass players.
This implies that wager per player in July has recovered to HKD21,193, indicating a 15 per cent month-on-month rise amidst robust gaming demand.
The number of whales, defined as those betting at least HKD100,000, increased to 23 in July this year, compared to the figure of 19 reported in July 2023.
Galaxy and Sands China ranked 1 and 2 in the brokerage’s premium mass survey, each holding a 25 per cent market share in terms of the total wager observed, with 11 out of the 23 whales playing at their casinos.
