Industry Analysts Gives Australia Bit of Good News

It is always great to receive good news from anywhere, let alone business analysts. The resurgence was given to Australia regarding high roller from analyst and with several gambling houses competing for clients such as Asian high-rollers, their efforts are paying off.

Analyst Positivity Great News for Casinos

Great optimism from analysts indicated that a recovery could be only months away. Several casinos in Australia have suffered from a decline due to less traffic from Asian high-rollers in the ongoing war between China and the USA. This harmed casinos, which had the lowest growth percentage in 30 years.

High-Roller Decline

Crown Resorts and Star Entertainment both reported a substantial decrease in their business high-roller segment. Due to the recent decline in high-roller business both continued to do everything in their power to take care of high rollers.

Analysts Positive About Growth in 2020

Macquarie Wealth Management analysts revealed that there would be a U-turn in the high roller segment. Full VIP recovery will take during the financial year of 2020 although analysts remained caution of VIP volumes and growth during 2019.

VIP Reduction Might Continue Till 2020

The turnover from international gamblers dropped by 33% in VIPs only in the past six months, and this amounts to $20.7 billion. A significant turnover decrease was suffered at a casino based in Sydney that has a 49% decrease in turnover. Another casino that suffered is Crown, which is Australia’s largest operator and only $19.9 billion was earned via VIPS which equals a reduction across the past six-month period of 12.2%.

Star Looks Forward to A Great Year

Despite the significant drop the future remains bright at the Star, the company has three casinos including one in Brisbane, Sydney and the Gold Coast. The domestic business makes up 80%, and the group enjoys a steady growth although VIPs do have higher earnings visibility and the best margins.

Asian High Rollers

As Asian high rollers become fewer due to the slowing economy in China many operators are nervous. Many believe the first run of fortune enjoyed by top operators around the world is now coming to an end as the high rollers do feel the pinch from the slowdown of the economics in China.

At the moment China has the slowest growth rate it had ever had since 1990, and the 6.6% growth rate is due to the trading war between the USA and China. It affects all industries including travelling, entertainment and casinos. The game most played by Asian high rollers are baccarat and operators all agree that it is the game universally that now belongs to the high rollers of Asia.

Recently the New York Time also commented on Las Vegas’s ways to cater to the needs and requirements of high rollers from Asia. Should analyst’s predictions be correct, whales or high rollers will be back to wager massive amounts of money in 2020.