With new casinos coming to the Cotai, it would seem that junket operators of Macau would be interested in offering their VIP services in the area. However, this is not the case. Junket operators are having a hard time getting traffic in the VIP rooms they already have, much less trying to open new rooms in another area.
The Macau Association of Gaming and Entertainment Promoters President Kwok Chi Chung recently spoke with GGRAsia and stated that junket operators are not actively seeking chances to establish a new VIP room at the casinos set to open in Cotai.
The VIP gambling operations in Macau for Q4 2015 fell 54% from the 70% range. According to Kwok, casino operators had adopted a strategy naturally to downsize the VIP gaming sector of their business. The operators are not eager to open new rooms as they are concerned that high rollers will not visit and the investment may not be worth the expense.
Kwok also stated that he feels that more VIP rooms will close in 2016 but feels the pace of closures will slow down when compared to the closings during the first half of last year. However, the VIP gaming market does seem to be stabilizing due to junkets having tightened their credit policies and are avoiding taking on client debts that they may be doubtful of repayment.