Despite the decline in Macau’s VIP sector and an uncertain China economy, “whales” are still betting big at city casinos.
According to a table survey by Citigroup, premium-mass players in Macau placed HK$655K (£62.7K/€75K/US$64K) in wagers per average sitting in September. That’s an increase of 43% over the same month last year.
Year to date, so-called whales — those who place average bets of HKD100K or more — have wagered a collective HK$43.3m, more than the HK$39.7m wagered in all of 2023.
The body count is also up. Citi tallied more than 600 premium-mass players at casino tables in September, up 42% year on year.
Exchange crackdown in Macau a non-issue
In an August note, Citi analysts George Choi and Ryan Cheung wrote that “demand by mainland Chinese players remains robust.” That’s in spite of a recent crackdown on illicit money touts, designed to quell exchange gangs and loan sharks around Macau casinos.
The segment clearly has no trouble transporting funds from the mainland into the special administration region (SAR). And they’re not hampered by ongoing deflation in the world’s second largest economy.
Despite those headwinds, observed the Citi team, “Macau is still getting players who are still very much willing and able to spend.” At Galaxy StarWorld, for example, Choi and Cheung witnessed one gambler placing a HK$640K bet.
During stops at Galaxy Macau and Wynn Palace, they saw high rollers betting HK$130K-HK$330K.
“The fact that this happens after the Macao government’s decision to criminalise illegal money exchanges within casino premises means that most players, via legitimate channels, are still able to get their funds to the Macao casinos,” wrote Choi and Cheung.
Despite the virtual collapse of Macau’s junket trade, whales and premium players remain an essential part of the patron demographic at the city’s casinos.
