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How The Soccer World Cup Affected Macau gambling Stocks

2019-11-07

How The Soccer World Cup Affected Macau gambling Stocks

Macau casinos experienced a dramatic slump during the second part of 2018. The stocks of the top six houses recorded a substantial drop in valuation, causing jitters among investors. Investigations revealed revenue from VIP gamers was declined due to fewer visitors.

Macau is the world’s gambling capital, and casinos operating there have historically delivered better returns than elsewhere. However, income from VIP gamers, the most lucrative clients, started falling mid last year. This caused a sharp drop in the valuation of the major casino stocks due to reduced prospects for growth in VIP gaming revenue.

How Casinos Operate

Most casinos in Macao have a business model based on attracting VIP gamers from the mainland. These clients called whales, play Baccarat. Indeed, VIP Baccarat is so lucrative that it contributes over 56% of gaming revenues. The performance of VIP baccarat bets directly impacts the valuation of Macau casinos in stock markets globally. Readers may wonder how VIPs influence the returns of a game whose outcome is not reliant on skill. It turns out that most of them are soccer fans. During the World Cup held in Russia, the whales stopped playing, preferring to watch the best soccer players in the world in action.

Gaming houses stack betting odds in their favor such that they always earn more than the players. This dynamic, otherwise known as the ‘house edge’, is what makes casino businesses worth billions of dollars. As it is, gamers are unlikely to win at a house with a big edge.

Baccarat is similar to roulette because it does not require much skill, and choices do not affect a player’s outcome. Its simplicity makes it a favorite for many players because all they do is place a bet. The other attraction is that it has better odds than other games of chance.

Business as Usual

Macau’s position as the gambling capital of the world remains sound due to the huge flow of clients from mainland China. If anything, visitor numbers are growing while their disposable income is increasing as the Chinese economy continues to expand. Recent figures indicate that clients are spending more than in the past.

The June-July 2018 slump in stock performance caused jitters among investors, but it was just an aberration as all the fundamentals are fantastic. However, the over-reliance on VIPs has raised concerns about the sustainability of their business model. In the meantime, VIPs have returned to play their favorite game, and stocks have rebounded.

Macau Casino Stocks Slump During the Soccer World Cup

Revenue from VIP gamers at Macau casinos declined towards the end of 2018 due to reduced client volume as Clients switched to the soccer World Cup.

Reasons Why Baccarat Has Become So Popular

2020-09-21Presently, it has become relatively easy to find games online, baccarat in particular. It is a renowned game in the industry. With its increasing popularity, "what is baccarat" is a popular question among gaming enthusiasts. It is a card game played by the "banker" and "player" between two hands. Initially, baccarat was a game that was associated with the elite. Over the years, baccarat has become a popular game, accessible, and ideal for players who enjoy it. The game is no longer reserved for high-rollers. Now it is common to find mini-baccarat tables in the casino. So, here is why baccarat is so popular.

Online Gambling Laws in Norway

2020-09-20Gambling has been a common form of entertainment around the globe. Its popularity has been a cause for concern among many governments and regulatory bodies. With the presence of the internet, many adults are enjoying the convenience of online casinos. Nonetheless, the legality of online gambling depends on national or state directives. For many regions, gambling enthusiasts know the websites to access to engage in online gaming, but the situation is different in Norway. Residents in Norway don’t know if and where they can participate in [online gambling](https://onlinecasinorank.org/). Guidelines an d restrictions to control Norway's gambling are crucial. But lack of clarity makes the situation challenging.

RTP Review and Social Casino Games

2020-09-18First things first! It is only fair that an online gambling enthusiast worth their title understands what exactly RTP is and how it works in online gaming. In simple terms, RTP measures the percentage of stakes a game return to players. It generally defines how a casino game will perform. Unlike in other online games, when it comes to social casino games, RTP never features anywhere as these games are purely meant for entertainment. Social casino games are a combination of online games and social media. In social casino games, real money is never part of the game so players must never expect real cash prizes.
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