Thinning ranks of Macau casino junket operators look elsewhere for profits

Macau casino junket investor Iao Kun Group Holdings (IKGH) saw its VIP gambling turnover fall nearly three-quarters in the month of July.

IKGH, which controls a share in the profits of five Macau VIP gaming rooms, said July’s rolling chip turnover was down 72% year-on-year to $440m. On the plus side, win rate was a phenomenal 4.52%, significantly above the expected theoretical range of 2.7% to 3%. Still, total turnover is down 61% over the first seven months of 2015.

Like many junket investors that have begun steering VIPs to casinos in other Asia-Pacific countries, IKGH has recently made efforts to expand its scope beyond Macau to offset the special administrative region’s 14-months-and-counting gaming revenue decline. Such international expansion is being credited with helping to reverse the fortunes of junket investor Jimei International Entertainment Group.

Jimei won’t release hard numbers until August 14, but it expects to report a consolidated profit in H1 2015 compared to a net loss in the same period last year. The Hong Kong-listed firm says the turnaround is “mainly attributable to the profit contributions from the group’s newly established gaming and entertainment business since February.”