Australian Casinos Seeing Increase in High Roller Play

Australia’s high roller industry took a hit in 2016, when 19 employees of Crown Resorts were arrested for promoting gambling in China. This, combined with the Chinese economy slowing down, has caused Australia to see fewer whales. However, a recent Morgan Stanley report suggests that the whales may be coming back to the Land Down […]

Australia’s high roller industry took a hit in 2016, when 19 employees of Crown Resorts were arrested for promoting gambling in China. This, combined with the Chinese economy slowing down, has caused Australia to see fewer whales.

However, a recent Morgan Stanley report suggests that the whales may be coming back to the Land Down Under. Analyst Monique Rooney, who led the report, wrote the following:

“Our recent industry feedback has allayed some of these concerns, with Chinese hotel/leisure companies reporting minimal impact on current trends and ample junket liquidity after recent consolidation.

“Further feedback suggests that overseas VIP market growth remains very strong relative to Macau – particularly in the Philippines and Cambodia.”

China Crackdown Helps Australia Draw More High Rollers

Much of the rise in Macau’s gambling scene has been attributed to Chinese high roller play over the years. But China began a crackdown on money laundering and other crimes a few years ago. This has caused more troubles for whales who transport large amounts of money to and from Macau casinos.

Australian casinos have taken advantage by trying to recruit these whales. Outside of the Crown Resorts arrests, these gambling venues have been largely successful in their efforts.

Crown Resorts Sees Huge Boost in High Roller Play

Crown casino has especially benefited from more whales coming to the country. This casino has seen a giant 55% increase to $51 billion for its VIP gambling within the last 12 months.

Even with the great news for Crown Resorts and other Aussie casinos, the amazing growth will likely stall. Ken Bart, CFO of Crown, said that they need to temper expectations.

“It’s very, very hard to predict from half to half, let alone from year to year, what sort of activity we can expect in VIP,” said Barton.

“We are cautious that people don’t get ahead of themselves and think that this is some sort of VIP boom that’s occurring.”

Nevertheless, Australian casinos like Crown Resorts will continue riding the new wave of VIP gambling until the trend slows.

 

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