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Macau Gambling Slump Continuing

Friday March 13,2015  :  GAMBLING SLUMP IN MACAU MAY CONTINUE
 
Corruption and extravagance clampdown in China is influencing wealthy Chinese mindset.
 
This week saw the market capitalisation of the major land gambling companies in Macau fall below the $88.5 billion benchmark, with revenues declining as a result of a slowdown in China's economy and the influence on the mindset of China's wealthier classes of the severe corruption and extravagance clampdown by the government.
 
That's remarkable because it is the first time companies have recorded this low a number since Chinese leader Xi Jinping took power in November 2012. Market capitalisation boomed upward to a peak of $198 billion following his ascendency, only to plunge southwards as his drive against corruption became a reality in January last year.
 
That brings us to the present, where market capitalisation of the big six firms is pretty much back where it was when the Chinese leader assumed command of the nation.
 
Analysts are now less optimistic that the crackdown is but a temporary interlude, albeit one that has slashed $111 billion off the companies' valuations, and there is uncertainty as to how long it is likely to continue, or whether there is now the possibility of permanent damage to Macau's gambling industry.
 
Nine months of steeply declining revenues have done little to brighten the picture.
 
This week business news agency Bloomberg quoted its head of Asian business intelligence, Tim Craighead, who said:
 
"Beijing’s anti-corruption push spurred an anti-extravagance mindset among wealthy Chinese that are core to Macau’s VIP business, and this may be here to stay.”
 
Adding to the jitters of an already nervous market, the Beijing News reported this week that the Chinese director for its Liaison Office, one Li Gang, has revealed that Macau's gambling industry is cooperating with the central government in its anti-graft drive.
 
The newspaper quoted Li Gang as saying:
 
“As the crackdown on graft is stepped up, some corrupt officials – including executives of some state-owned enterprises – now dare not go to Macau to gamble. Moreover, because of measures taken by Macau’s gambling industry, if such officials do gamble in Macau they will be discovered.”
 
The official went on to suggest now might be the right time put in place an extradition treaty between China's central government and the government of the Macau special administrative region, tightening further the enforcement bonds between the two administrations.
 
“It’s necessary for both sides to strengthen co-operation in this field," Li Gang said. "Once any criminal flees to Macau with money, the Macau authorities could repatriate so as to jointly crack down on crimes. So far, there is a discussion mechanism in place between Macau and the Mainland but there is not any repatriation agreement, which should be sealed as soon as possible.”

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Gambling News :

Betsoft Gaming In Deal With SuprNation - Betsoft Gaming’s latest content supply partnership will see its Slots3 collection launched on VoodooDreams.com, SuprNation’s primarily Swedish and Nordic focused online gaming operation.

Ladbrokes New SPonsor of The Hennessy Gold Cup - The longest sponsorship deal in the history of British horse racing has come to an end with Ladbrokes becoming the new sponsor of the race formerly known as The Hennessy Gold Cup for the next five years, Racing Post reports.

Ladbrokes Appoints Annemarie Durbin - Durbin, a qualified lawyer with over two decades of international banking experience, will also take up membership of the Audit, Remuneration, Social Responsibility and Nomination Committees with effect from March 1, 2017.

Olympus Slot Pays $210k Jackpot to USA Player - “I love slots, been playing a long time. I go to Vegas once a year. In between I play online. It’s so convenient. I play mostly Hold the Riches, Pyramid Plunder, Dollar Storm or Olympus. I’ve also started playing keno more.”

Divine Fortune SLot Launches - NetEnt has launched a new local jackpot title “Divine Fortune”, a five-reel, 3-row, twenty-fixed line video slot themed on ancient Greece and a world of mythical creatures, legendary riches, and golden coins.

BetatHome profit guidance for the 2016 financial year - bet-at-home.com AG has lifted its profit guidance for the 2016 financial year following what it terms a “supremely positive business development in the fourth quarter”.

Aussie Millions $1,150 buy-in No-limit Hold’em Accumulator Results - In the latest Aussie Millions event - the A$1,150 buy-in No-limit Hold’em Accumulator, local poker pro Bridges Roe prevailed against a field of 721 to claim the main prize of A$160,725, despite starting the final day at the bottom of the chip counts.

2 Huge Wins at Bovada Casino - Paul D. from Boston, MA, scored really big, earning $808,529.80 playing the Food Fight progressive jackpot slot on the Bovada online casino on a wager of $11.25. Unfortunately Bovada's press release does not give any further details.

China Internet Clean Up Campaigns - The advisory revealed that the current drive will run through to the end of March 2018, and that online gambling and other inappropriate or unacceptable content must be blocked because:

AOPA to campaign for poker to be left alone - The threat that amendments to the federal Australian Interactive Gaming Act aimed at stopping in-play action could spill over into an online poker ban has motivated Aussie players to form an action group in support of the game.

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