New | HK casino junket plays poor bets amid slowdown
Macau regulatory move on VIP room operators and declining revenue from high rollers see gaming stocks tumble to multiyear lows
Hong Kong casino junket plays are trading near multiyear lows as a protracted slowdown in Macau's high-roller gaming revenue and a mooted government assault on the sector's business model take its toll.
Neptune Group, one of the sector's largest players with a market capitalisation of HK$350 million, fell 2.63 per cent on Wednesday, hitting an eight-year low at 7.4 HK cents.
Shares of Jimei International Entertainment Group, which holds casino junket contracts in Macau, Cambodia and Australia, according to its website and recent interim report, dropped 3.29 per cent to HK$6.76.
Jimei has fallen 49.4 per cent so far this year and is down 8.53 per cent this week after the South China Morning Post revealed Macau regulators are proposing to force the more than 200 licensed junket operators to disclose their key employees and the origins of the multimillion-dollar investments that fund them.
The move came after recent Macau street protests staged by angry investors demanding money back from junket operator Dore Entertainment after reports a Dore employee stole up to HK$2 billion from the firm.
Also known as gaming or VIP room promoters, junket firms channel wealthy clients into casino private salons, arranging hotel rooms and other perks. Typically, their main role is to provide credit to Chinese clients subject to mainland currency controls.