Following China’s economic recession, gambling specialists predicted a drop in high roller expenditure in Australia. Analysts predicted that high rollers would abandon casinos like they did in Macau. According to a recent storey in the Sydney Morning Herald, the expectation was substantially “exaggerated and overplayed.”
As a result of Asian high rollers not playing, shares in Macau’s casinos dropped 15%. Naturally, Australia’s largest casino brand was keeping a close eye on this pattern to see if it would repeat itself. Morgan Stanley, on the other hand, stated that while the concerns are legitimate, there is no sign that Australian casinos will face the same fate. “Recent industry input has allayed some of these fears,” according to the business, “with Chinese leisure companies reporting limited impact on current trends and substantial junket liquidity following recent mergers.” According to new information, the international VIP market continues to grow at a rapid pace in comparison to Macau.”
Crown Casino is Australia’s most popular high-roller destination.
The Star’s stock has decreased 15% since the beginning of 2018, whereas Crown’s stock has climbed by 4%. Given the brand’s crisis and a legal case in China where Crown officials were accused of poaching high rollers, the increase seemed startling.
“Crown’s performance were bolstered by the substantial improvement in VIP volumes, which helped balance the lower main-floor gaming results across its casinos in Melbourne and Perth,” according to Macquarie Wealth Management.
The banks, as well as Crown’s Chief Financial Officer, Ken Barton, were cautious in their forecasts for the casino’s high roller growth, citing ‘Macau’s slowdown’ as a reason. “It’s very, very difficult to estimate what kind of activity we can expect in VIP from half to half, let alone from year to year,” Barton added. “We’re concerned that people don’t get ahead of themselves and assume that this is some type of VIP boom that’s happening,” he added.
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