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China – Macau promotional teams back working in China

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Despite China’s crackdown on casino promotional teams working in mainland China, a host of Macau’s operators are now believed to have resumed their marketing efforts.

Crown Resorts saw 17 employees arrested in October last year for alleged breaches in sales and marketing for casino activities in China.

However Galaxy Entertainment, Las Vegas Sands and MGM Grand have all resumed their marketing efforts in China according to the Australian Financial Review.

Operators are allowed to promote if the focus is on non-gaming activities such as theme parks, tourist attractions, and restaurants.

Analyst Nomura said: “In our view, Beijing remains focused on plugging holes in the capital flight bucket, primarily through junkets and, to a lesser degree, UnionPay. While we don’t yet have the December breakdown of VIP versus mass revenues, we believe that the recent growth spurt in Macau VIP revenues to over 20 per cent in November (four times greater than mass growth for the month) is not sustainable and that it could lead to negative policy responses from Beijing if it were to persist.”

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