HALISTER1: Galaxy Among Most Hit as Macau Steps Up Anti-Laundering Push: DB

Galaxy Among Most Hit as Macau Steps Up Anti-Laundering Push: DB

(Bloomberg) -- Galaxy, Wynn Macau and SJM likely most affected given their higher VIP exposure, Deutsche Bank analyst Karen Tang writes in note.
  • Est. VIP segment accounts for 24%, 24%, 19% of total Ebitda at Galaxy, Wynn Macau and SJM respectively
  • Expect new rules to put pressures on VIP revenues, increase operating costs
  • Macau changes rules on anti-money laundering from May 13, areas expected to be under greater scrutiny include:
    • Identities of ultimate beneficiaries of transactions >$62k must be submitted
    • Operators need to monitor transactions involving government officials, SOE executives, senior officials and family members
    • People using aliases or under anonymity no longer accepted
  • NOTE: June 2, Hidden Earpieces in VIP Rooms Show Macau Money Laundering Risks
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
880 HK (SJM Holdings Ltd)
1128 HK (Wynn Macau Ltd)
27 HK (Galaxy Entertainment Group Ltd)

People
Karen Tang (Deutsche Bank AG)

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