January 19, 2015

Junket operators expanding outside Macau

Bloomberg reported yesterday that key junket operators such as the David Group, Suncity Group, and Hengsheng Group have been expanding to markets beyond Macau given the gloomy prospects for the city’s casinos amid China’s anti-corruption drive. According to the report, the clampdown and stricter traveling rules in Macau have prompted more gamblers to go to places with easier access. The junket operators have reportedly been taking more wealthy customers to Asian centers with more relaxed visa rules such as Manila, Vietnam and South Korea.

Our take: This trend bodes well for the large gaming operators in Manila especially amid the ongoing expansion in the country’s casino capacities. Bloomberry Resorts Corp (BLOOM) has just opened the Phase 1A of its Solaire facility while Melco Crown (Phils) Resorts Corp (MCP) has partly opened its City of Dreams Manila facility that is slated for a grand launch before the Chinese New Year, Both facilities should also benefit from improving infrastructure such as the impending completion of the first phase of the NAIA Expressway project that will connect the main airport terminals to the Entertainment City. – WealthSec