Macau VIPs Return, Gross Gaming Revenue Soars 26 Percent in June

With their money now in the tax haven of Macau and removed from China s oversight, the VIP client can gamble, or simply cash out with their winnings.

It s estimated that VIP gamblers are responsible for more than half of Macau s total casino revenue.

In addition to cracking down on high rollers, China has also pressured Macau to implement better security measures to restrict money laundering. ATM withdrawals are now limited to about $1,450, and 680 of the machines have been fitted with facial recognition technology that verifies users identities and monitors transactions.

Jinping s federal government continues to hold the upper hand in deciding the future of Macau.

Should VIPs be allowed to use touring companies to visit the city, gaming revenue will almost certainly continue to climb in a positive direction. More regulation and stricter controls of money movement will presumably do just the opposite.

For casino companies like Las Vegas Sands, Wynn, and MGM, which have all invested billions of dollars in the enclave, less supervision is of course the preferred route.

The operating units of the US-based casino and hospitality companies have gained much value on the Hong Kong Stock Exchange in 2017. MGM is up 8.5 percent through June 30, and Sheldon Adelson s Sands is up almost 20 percent. But it s Wynn who s done most of the winning, as the conglomerate is trading 55 percent higher this week than it did in January.

However, ongoing concerns of further enforcement controls being levied from Beijing keep Macau volatile.

The June revenue report pulled back the stocks. Sands China was down over two percent on Monday. MGM lost over 3.5 percent, and Wynn lost 2.7 percent.