Estimate of IR Casino Revenues Spread

Posted: May 18, 2010 in Uncategorized

18 May 2010

Estimates by Professional Ground

VIP 35%, Mass Tables 30%, Slots 35%

 
 
 
It is highly probable that Integrated Resort casinos “spread” with regard to total gaming revenue contribution, by Mass Tables, Slots and VIP/High-rollers would be quite a balanced distribution pie as shown above.
 
Professional Ground panel’s estimates are based on the following rationale:
 
* That IR’s total gaming revenue attainable will likely be approximately 20 – 25% of Macau (with USD14b).
* IR’s spread between Mass market & VIP is likely to be 65% mass gaming revenue and 35% (or lower) VIP gaming revenue.
* That the IR gaming market (locals & tourists) is substentially more slots/electronic games players.
* VIP gaming continues to be restricted by tight control over Junket operations.
* Casino may have to bear greater direct credit risk or giving higher rabates to direct players.
Credit Risk exposure = Credit of chips to Junekts,

Direct credit to players,

Sharing credit exposure with Junkets

* Sustainability of long-term casino credit mode in question? (low collection possibility coupled with high volatility).

* “Pseudo VIP players” to circumvent the regulatory control on junket channel will take place.

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