Macau gamblers cower at watchdog’s sudden bite

LET group

08/12/2021 03:41

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are their own.)
    HONG KONG, Dec 8 (Reuters Breakingviews) - Macau regulators
could be cutting off credit  urn:newsml:reuters.com:*:nL4N2SS287 for high rollers in
China’s casino hub, according to Bernstein analysts. If
confirmed, officials escalated their attack quickly: It’s only a
week since watchdogs sank their teeth into Alvin Chau and his
Suncity group, the territory’s largest junket operator.
 urn:newsml:reuters.com:*:nL1N2SL012
    For investors wagering on Wynn Macau  1128.HK , Sands China
 1928.HK  and rivals, that’s alarming. Sure, big spenders are no
longer a big deal: Less wealthy patrons now account for around
two-thirds of gaming revenue and almost 90% of EBITDA, according
to official data and Breakingviews estimates. 
    The problem is the sudden uptick in regulatory uncertainty.
Shareholders are already jittery after authorities launched a
controversial consultation on casino concessions in September,
wiping $18 billion  urn:newsml:reuters.com:*:nL1N2QH01D off operators’ combined market
worth. That paper, published with little warning, floated ideas
including stricter dividend rules and officials supervising
operations. 
    If there are more abrupt announcements ahead of licence
renewals in 2022, the pace of change could be as unsettling as
the change itself. (By Katrina Hamlin)
    Follow @Breakingviews https://twitter.com/Breakingviews on
Twitter
    
    Capital Calls - More concise insights on global finance:
    Evaluating a retiring pandemic CEO  urn:newsml:reuters.com:*:nL1N2SS1VK
    Microsoft takes antitrust shot from EU  urn:newsml:reuters.com:*:nL1N2SS1QS 
    AT&T’s regulatory déjà vu  urn:newsml:reuters.com:*:nL4N2SS3FZ 
    Samsung shakeup overlooks one important component
 urn:newsml:reuters.com:*:nL4N2SS13D
    Mattress IPO puts Chinese mystery to bed  urn:newsml:reuters.com:*:nL1N2SR011

 (Editing by Antony Currie and Thomas Shum)
 ((SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: https://bit.ly/BVsubscribe))