Operator in five Macau casinos
Iao Kun Group Holding Co. Ltd., a VIP junket operator based in Macau, will not be listed on the Hong Kong Stock Exchange. The exchange rejected Iao Kun’s application due to “overall market conditions and the near-term industrial outlook in Macau,” according to Reuters.
Iao Kun operates out of five Macau casinos including Galaxy, StarWorld, Sands Cotai Central, City of Dreams and Le Royal Arc.
Following the drop in Macau’s gaming revenue, now in its eighth month, analysts are doubtful that the industry will rally any time soon, and a number of junket runners including the David Group and Gold Moon have closed VIP rooms in the Chinese gaming city.
“With the larger junkets now facing increasing sector pressures, we believe it is increasingly likely that ancillary nongaming services will be scaled back or terminated,” Daiwa Securities analyst Jamie Soo said.
The decline in Macau followed a crackdown on corruption by the Mainland Chinese government under President Xi Jinping.
