Local Macau Casinos Have High Roller Advantage

Filed in archive Casinos on August 15, 2006

Local Macau operators such as Galaxy Entertainment have a distinct advantage over US operators when it comes to attracting the lucrative high roller sector, according to analysts.

Whilst US operators in Macau, such as Wynn, are likely to gain mass market, Asian casinos can make use of local junket operators to offer credit facilities to high rollers locally - without any money crossing borders. The US operators are restricted due to strict money laundering laws.

By using junket operators as intermediaries, gamblers can settle their debts or collect their winnings in their home countries without having to navigate local currency controls or draw attention to their wealth.

[Gaming analyst Stephen] Tan, who ranks Galaxy as one of his top picks in the Asian gaming sector, estimates Macau's revenues from mass- market gaming are likely to grow about 25 percent a year over the next few years, while the high-roller business will grow by a slower 7 percent a year.

However, the high-roller segment is more lucrative, with gamblers wagering an average of US$2,500 (HK$19,500) a hand, compared with US$100 a day for the average casino visitor in Macau, he said.

Article: Hotline to the high rollers