Will the tables turn for Macau’s gambling industry?
The main developments for the industry have included a drop in gross gaming revenue and questions over how to move operations abroad. “However, the mainland authorities have stepped up scrutiny on such practices since the beginning of this year, which dealt a blow to the industry.” As Macau’s casinos have high operating costs, moving overseas allows for profit to be boosted owing to lower expenditure.
Recovery is largely reliant on the roll-out of a vaccination in China, which is expected in 2021. “Instead of expecting business to recover this year, people in the industry are placing their hopes on Q1 and Q2 next year.” In addition, normal resumption of tourist visas is necessary for the rebound – and there are signs that this has picked up somewhat. During Golden Week, Macau’s hotels saw 40% occupancy rates.
The specialist also highlighted some of the main players. “Galaxy Entertainment used to be the largest casino operator in Macau, but it slipped to the second place during the pandemic because a number of top customers opened accounts at Melco.” The third-largest casino is Sands China, which has offered heavy discounting this year to entice customers.
Other topics covered include the development of Macau’s gambling industry, junket operators and the importance of hotels. The discussion ended with the specialist noting which of the six main operators they were most optimistic about.
To access all the human insights from Third Bridge Forum’s Interview – Macau Gambling & Gaming Industry – Challenges, Opportunities & Development Outlook – click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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