Categories: General

Macau Casino Operators Resume Marketing Activity In China

Macau casino operators are reportedly shifting their focus back to China after ceasing all marketing activities when Chinese authorities arrested 17 Crown Resort employees in October 2016.

According to industry sources, casino operators like MGM Grand, Las Vegas Sands and Galaxy Entertainment have restarted marketing activities in China and some are even hiring new staff.

Casinos are legally allowed to market resorts and all other side businesses like restaurants and theme parks in China as long as they do not directly promote their casinos.

Most major casino operators had pulled back from the market in the aftermath of the unexpected arrests of 18 Crown employees.

Crown rival Star Entertainment is yet to resume its operations in the market. It is said to be closely monitoring the situation. The casino had pulled its staff out of China after the arrests, despite operating within the law as it was not clear at that point of time if the crackdown was targeting Crown Resorts alone or on the industry as a whole.

According to sources, the companies resumed their activities in China since they believe that the clampdown on Crown isn’t indicative of a blanket ban on casino marketing activities. Additionally, China is a vital market for casino operators and cannot be ignored. Chinese high rollers have long been the focus of casino operators’ marketing efforts, wooing them through junkets by using attractive perks and multi-million credit lines.

Casino companies are confident about resuming operations in the mainland primarily because they believe that Chinese authorities are far more concerned about blocking illegal capital transfers of capital via casinos in Macau and Australia by high rollers.

The 17 Crown staff members who continue to remain under arrest were detained on charges related to gambling crimes. No further charges have brought against them and it could be months before that happens. Those arrested include the head of Crown's international VIP program who was on a visit to Shanghai.

Although revenue breakup between VIP and mass market for December isn’t available yet, gaming analysts believe that VIP gaming is on a strong upswing in Macau and this can trigger further action from Chinese authorities.

In a statement analysts from investment firm Nomura said,

In our view, Beijing remains focused on plugging holes in the capital flight bucket, primarily through junkets and, to a lesser degree, UnionPay. We believe that the recent growth spurt in Macau VIP revenues to over 20 per cent in November [four times greater than mass growth for the month] is not sustainable and that it could lead to negative policy responses from Beijing if it were to persist

Paul Butcher

Hi, I am the Chief Editor of top10casinowebsites.net, this site is dedicated to all thing casino. I have been working around the casino industry for the last 12 years, with different brands. The main purpose of this site is to keep you informed with the latest news and offers around

Share
Published by
Paul Butcher

Recent Posts

LV Sands, Concerned About Online Competition Amid Plan to Build $6bn Casino

Summary: Las Vegas Sands chairman and CEO Rob Goldstein is concerned about the impact of…

3 weeks ago

Biloxi Casino Plans Advance as MGC Considers Two Venues

Summary: Tullis Gardens Hotel and the Tivoli development are in the works. The casinos would…

4 weeks ago

Rio Hotel & Casino Finishes Phase One of Massive Property Renovation Project

Summary: Rio Hotel & Casino has completed phase one of its multi-year property-wide renovation project.…

1 month ago

Industry Heavyweight Execs Talk Tech Future at TribalNet Conference & Tradeshow

Summary: Monday’s TribalNet Conference & Tradeshow brought together gaming industry executives who discussed the future…

2 months ago

Nevada Regulators Propose Solution for Armed Casino Security Shortage

Summary: The Nevada Gaming Control Board addressed the shortage of armed casino security following the…

2 months ago

Venetian Waiting for Final Approval for $550m Dividend Distribution

Summary: The Venetian in Las Vegas is getting ready for a massive dividend distribution. The…

3 months ago