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Casino Magnate James Packer Says Macau Downturn Worse Than Anyone Imagined

Casino Magnate James Packer Says Macau Downturn Worse Than Anyone Imagined

James Packer (right) with Robert De Niro at the opening of the new Nobu resort in Manila, Philippines.

James Packer, the Australian billionaire and casino mogul, has admitted that Macau’s economic downturn happens to be ‘more severe’ than any of the gambling hub’s operators could have foreseen.

Packer’s Crown Resorts derives 50 percent of its income from the 34 percent stake in Melco Crown, which owns properties on the Cotai Strip, including the lavish City of Dreams resort.

Just more than a 12 months ago, Macau had been announced by Forbes to be one of many world’s fastest-growing economies, and the spot’s casinos had been enjoying revenues that are bi-monthly compared to that of Las Vegas’ yearly haul.

But a crackdown that is unprecedented corruption and cash laundering by President Xi Jinping’s government regarding the mainland has halted the success tale and delivered profits tumbling.

Financial Crackdown

The monetary crackdown is section of an ongoing anti-corruption drive that has frightened from the high rollers therefore the junket organizations that once accounted for some 60 percent of Macau’s revenue.

Tub thumping from Beijing has delivered shares into the regions casino companies tumbling. And this, plus a smoking that is new, increased financial restrictions imposed on tourists, and a generally weak Asian economy has struck the region hard.

In April gross gaming revenue fell 39 per cen . . .