David Group, a prominent Macau junket operator, has confirmed that it plans to close three out of seven of its VIP rooms in the gambling hub and will seek expansion in other Asian countries.
The company is taking the action as part of a re-organization prompted by an industry downturn, Frank Ng, the company’s director of corporate communications, told Bloomberg.
“We’re adjusting our business strategy; this is a general trend in the industry,” Ng said. “We’re hibernating. Once we wake up, we can restart.” The company can reopen the rooms when the market conditions improve, he was cited as saying.
David Group is implementing a strategy of colaboration with multiple properties throughout Asia to grow its player base locally.
Macau’s junket operators have been hit by a downturn in VIP gambling revenue as China’s anti-corruption drive has driven high rollers underground. Even before the clampdown some prominent names have actively said they were seeking expansion outside of Macau to diversify their business base.
Amax International, which recently bought an online gambling license in Vanuatu, last year said it was looking for overseas expansion “to absorb the unfulfilled demand from high rollers in Asia, who are more willing to visit casinos outside Macau.”