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Australian Casinos Profit from Macau Collapse
- February 19, 2015 By Nemanja L. -
Leading casino operators in Australia have seen a major increase in revenues as a result of China’s anti-corruption policies that have seen Macau casinos took quite a hit in recent months.
With VIP gamblers fleeing Macau as the pressure on casinos in the region increases, the Land Down Under appears to be slowly becoming the new favourite destination of Asian gamers.
Australia’s largest casino operator, Crown Resorts Ltd, revealed on Thursday that the revenue from VIP players in their Melbourne casino had almost doubled in the six-month period that ended in December.
Meanwhile, Echo Entertainment Group, who is their biggest rival, has also stated that their VIP gambling revenue has reached record numbers.
Despite the fact that they also operate several casinos in Macau, Crown shares rose 10 per cent as the high rollers leaving the Chinese territory started attending their establishments in Australia.
Echo, on the other hand, saw its shares jump some 9 per cent as the news broke that the turnover from VIP gamblers in their Australian casinos reached record A$23 billion, while net profit soared 78 per cent to A$112 million.
Crown and Edge Battle for Customers
The two companies have established quite a domestic rivalry as they are currently locked in the battle for government approval to build a gambling establishment in Brisbane, one of Asia’s most favourite tourist destinations.
Crown is also currently in the process of building a A$2 billion casino in the neighbourhood of Echo’s revamped Sydney waterfront complex.
Junket Operators in High Demand
Australian gaming companies are vying for the affection of junket operators, who are actively searching for new gambling destinations for their most exclusive clients.
Both Crowd and Echo are preparing numerous perks and benefits for their potential customers as they hope to get the most of the opportunity that unexpectedly presented itself.
Junket operators are now in the process of singling out the individuals with business of family relations to Australia as they will be the easiest to persuade to take their gambling to the Land Down Under.
Other Asian countries where land-based casinos are allowed are expected to profit, while a portion of Macau high rollers might decide to explore other opportunities and visit top online casinos instead.