Where’s The Casino Whales?

Posted: June 17, 2011 in Uncategorized

Commentary on news report

17 June 2011  FRI

The Business Times reports an interesting story about “MBS Plans Private Gaming Area for Casino Whales”.

There are a few pertinent points readers may just want to take particular notes in order to correctly decipher Mr. Leven’s another “Loose-Talk” recently.

Let’s go straight to the points,

–  In reality, there’s no such thing as VIP casino patrons who would slam on the table with USD 1m per hand. (Though it was suggested by Mr. Leven there are such big whale behaviour). Even in the scenario of Macau VIP plays, casino would set upper limits for those who bet in the VIP rooms. Such limits would vary from say, HK$800,000 to HK$2m per hand. (about USD100,000 to USD300,000 per hand).  Many would bet even less. The reason is very simple, casino have to try capping the risks. Players would also like to manage their risks. Yeah, Mr. Leven is not casino-trained. junket players are even more shrewd these days and nobody would bet USD 1m per hand. Anyway, this is the same “trick” as what Mr. Adelson said previously, about ferrying ‘five 747 plane-loads of VIP players to Singapore casino’.

–  Again MBS still in the old mindset about “The Asian players at that end like to be above with large views and what have you….” kind of BS. Many Asian big players are not attracted by tall and luxury buildings / property. They just look for transportation (air, land or sea), proper service, rabates, chips credit, discount on loss.

–  The total amount of USD 1b “receivables” by the two IR casinos in Singapore tells a compelling story – That the casinos are hanging on their own credits, without junkets coming into the picture to bear their credit risk exposure.  The Singapore gaming authority apparently takes their time and cautious about doing junket probity checks. More bad debts can be generated by the two casinos in the coming quarters.

–  The two IR casinos need to grow the Mass market pie in order to sustain high Ebitda margins. Currently there’s sign of slowing down of Mass market gaming. That’s clearly shown in their respective VIP gaming revenue portion has already hit beyond 60% of total casino revenue as a whole. Going forward, the gap between high-roller and Mass market pie may widen. That means, drop in margins.

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Comments
  1. spore news says:

    it looks like some extinction going to happen…

  2. sbs says:

    helpful information to me ~

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