Macau’s reputation as the go-to destination for casino VIPs is under threat as facilities improve in other regional destinations that offer lower tax rates and better junket margins.
According to Union Gaming, Macau leaked US$1.4bn of VIP gross gaming revenue last year to its four geographically closest rival markets - Cambodia, Korea, Philippines and Vietnam - with Cambodia and Vietnam accounting for $1bn of that amount.
This year, the total lost by Macau to the quartet is predicted to rise to $2.6bn and the competing territories could generate VIP GGR totalling $6bn within the next two years.
