A concerted tightening of regulatory controls against gambling by mainland Chinese authorities looks set to counter expectations of a VIP-led recovery for Macaus gaming operators, leaving base mass to do the heavy lifting according to investment bank Credit Suisse.
In a Monday note examining the short-term outlook for Macau post-COVID, analysts Kenneth Fong, Lok Kan Chan and Rebecca Law described the VIP segment as being under serious pressure with a number of key factors looming for Macaus gaming market.
Despite gaming stocks reflecting strong investor sentiment, Credit Suisse believes Macaus recovery may take longer than expected due to structural pressure being placed on the VIP system.
We believe the VIP system will substantially …
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