The sector needs to try new ideas to help gaming recover, analysts say

First junket-run VIP slot room opens in Macau

The first junket-run VIP slot machine gaming room in Macau opened on the weekend inside Jimei Casino on the Peninsula, confirmed Union Gaming.
2016-01-14
Reading time 1:05 min
The first junket-run VIP slot machine gaming room in Macau opened on the weekend inside Jimei Casino on the Peninsula, confirmed Union Gaming.

Featuring 130 high-limit slot machines, the venue was funded by traditional junket investors, one of which is a well-known VIP slot player in the Chinese enclave.

Although severe revenue losses at Macau casinos are related to a decline in VIP play, analysts have said the sector needs to try new ideas to help gaming recover. The new room is being operated like a junket and offers a VIP gaming experience that could appeal to slot players. It provides a rolling program, extensions of credit, cashback and rebate on losses.

“We believe the opening of this slot parlour could be indicative of a segment of the industry that is very much in need of revenue and willing to try an idea that in a different era would likely not have been considered,” said Grant Govertsen, Union Gaming analyst.

While other integrated resorts in the region offer VIP areas in the casino with high-limit slots, the new room at Jimei is the first to services provided by junket operators. But Govertsen warned that junket players “high maintenance from a customer service perspective” and it could be difficult to get favourable results immediately from the room.

“The location of this new VIP slot parlour is within an existing third-party casino that offers few other amenities,” further cautioned Govertsen. “We believe it is one of the lower performing third-party properties in Macau. As such, it could be a tough sell to attract and retain players based solely on having VIP slots on offer.”

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