On November 29th, Zhou Cheuk-Hua, chairman of the Sun City Group (1383.HK), was arrested on suspicion of opening a casino in the mainland. Citigroup reported that as the Sun City Group is the largest gambling intermediary group in Macau, it is expected that the market will react negatively to Macau gambling stocks again, and will not be surprised. It is believed that the adjustment of gambling stocks may be short-lived, because at present, the business of Macau VIP lounge accounts for only about 15% of the EBITDA of the industry before the epidemic, and it is expected that the impact of related events on the operating profitability of gambling stocks is very limited, and the impact is not as significant as in the past. The bank believes that the recent correction in the share price of betting stocks may bring good buying opportunities, with Galaxy Entertainment, 0880.HK and Melco as the first choice. Macau's gaming revenue is expected to be 168 billion patacas in 2022, meaning an annual increase of 92 per cent to about 68 per cent of 2019 levels, and the bank has conservatively predicted that the VIP lounge will return to only about 36 per cent of 2019 levels. For 2023, the bank expects Macau's midfield gaming revenues to exceed 2019 levels.