VIP gaming in big trouble, research house says

2015/10/7

From:Macau Business

JL Warren Capital says the liquidity problems of Macau’s VIP gaming promoters are proportionally worse than those of US investment bank Lehman Brothers when it collapsed in 2008.

“What many have labelled Macau’s ‘liquidity crisis’ is more than a ‘Lehman Moment’,” a note by the equity research house says.

The note predicts that the problems of the gambling junket operators will persist because measures taken in the mainland against capital flight will exacerbate the effect of the campaign there against corruption, which has deterred wealthy mainlanders from flaunting their wealth in Macau’s casinos.

Copyright@Macau Business