Macau – A luxury hotel and casino resort in Macau; Wynn Macau, has today increased its level of incentive commission by two and a half percent for junket operators in the region, focusing on attracting VIP and high roller players amid a downturn in business due to the coronavirus outbreak.
The news comes after a report was released today in the city and special administrative region by Credit Suisse; a global wealth manager, investment bank and financial services company founded and based in Switzerland.
The firm stated:
“As per our checks, Wynn lifted junket commission from 40 percent to 42.5 percent effective 1 March, matching its Cotai peers. Wynn has always stressed that they compete by product but not pricing; as such, we are very surprised by such a move especially with minimal demand now.”
Reportedly, the move by Wynn Macau is the first increase of its kind in fourteen years, in an attempt to recoup some of the lost revenue over the past month as a result of coronavirus preventative measures.
Wynn Macau casino, operated by Wynn Resorts; an American publicly traded corporation based in Paradise, Nevada, currently has a gaming space of approximately 270k square feet and is one of the four most famous establishments in Macau. The casino has over 200 gaming tables and almost four hundred slot machines.
The statement on the news, which will see junket commission boosted to 42.5 instead of 40, continued to elaborate:
“Competition heating up; premium mass may be at risk. In a slow recovery, we expect more marketing dollars to reactivate players. With new supply in 2021 and intensified competition, margin may miss even if revenue recovers next year. Industry participants see demand likely to normalise in the fourth quarter as visas reopen in phases. The first stage is likely to cover the coastal cities by late April/early May while the others gradually in June/July.”