When you see MGM spend US$3.4 billion on a resort that opens a mere 26 months before the expiration of its concession, it’s a reminder that Macau casinos crave high returns to balance their extraordinary risks. The latest UnionPay issue involves removal of mainland bankcard system point of sale terminals from jewelry shops in Cotai casinos. The analysts see no accompanying crackdown on illegal portable UnionPay terminals that indicate transactions are taking place in the mainland, not Macau. UnionPay purchase-for-cash transactions mainly benefit premium mass players who bet big but don’t get credit from casinos, a segment JPMorgan estimates accounts for 32% of Macau casinos’ Ebitda. There’s no mention of what role, if any, mainland agencies may have had recent changes, or whether UnionPay terminals really are being upgraded.

Source: Forbes June 07, 2018 19:41 UTC