85
having direct links to state con- asks. The answer: “It’s because
trolled budgets. almost 11,000 factories have End of the credit line
closed down on the other side
Why clean air? of the border. Did you notice
that these factories closed down
a
nalysts are expecting a reduction of up to 25
per cent in Vip revenues in Macau casinos this
A well-placed government when the American economic
year because junket operators are finding it difficult
counsellor responsible for gam- and financial crisis was not even
to find credit.
ing has an interesting theory - close to the rest of the world, and
according to the Gaming inspection and
and is full of questions - most of when the casinos and junket op-
Coordination Bureau, Macau’s Vip rooms
which she answers herself. erators in Macau were at the peak
generated gross revenues of MOp 74.7 billion.
“Have you noticed the air of their credit lines to lure VIP
The sector is the main ‘provider’ for local
has been cleaner lately,’’ she gamblers?”
gaming operators and Vip baccarat generates
as much as 70 percent of total gross receipts
among the Vip gaming sector (see box Facts
FACTS AND FIGURES
and Figures).
a year ago the junkets were swimming in cash.
The counsellor in the gaming sector says:
VIP gaming revenues “This heavy lending was promoted by the
2006 – MOP 36.783 billions
concessionaries because they wanted to increase
their market share, so junkets were given
2007 – MOP 55.762 billion
guarantees that they would receive credit to give
customers despite bad performances in debt
2008 – MOP 74.772 billions
collection.
“Junkets would think if they did not receive
Gross total gaming revenues
commissions this month they would still be able to
lend money to Vips to keep the rolling chip status
2006 – MOP 56.623 billions
and cash in later,” she says.
2007 – MOP 83.022 billions
Still waters
Now, the waters are very still, she says, adding:
2008 – MOP 108.772 billions “With the current crisis no-one is playing as hard as
before, and many junkets are trying to re-negotiate
(Calculated from the VIP Baccarat traditionally
the settlement with casinos or Vip room operators.
representing almost 70 percent of total gross
revenues from VIP gaming in Macau)
Junkets are demanding better conditions so they
can offer better packages to their Vip customers
while casinos want to cut expenses and fear bad
debt.’’
To lure Vips now, junkets must give them
better deals as well, like more amenities, and
this becomes a vicious circle. Meanwhile, junket,
operators and casinos are facing difficulties trying
to collect bad debts due to the financial crisis.
and the casinos are especially in a bad position,
because they cannot promote unlawful means to
make it happen.
Whether they can collect their bad debts or not,
casinos are obliged to pay their taxes.
“This is a big problem: 40 percent is the
threshold. Casinos must receive at least
that amount from debtors in order to pay the
government and stay open,’’ the counsellor
adds.
The Venetian created its own bad debt fund
to make sure bad debts won’t affect their financial
capacity, she says.
“if i am not mistaken, US$11 million was put
into the fund. if the casino lends a Vip customer
MOp10 million, he loses it and is not able to
pay back, at least 40 per cent of that amount
is guaranteed by the fund and given to the
government.’’
april 2009
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132