Macau casino suppliers place bets elsewhere

September 8, 2022 Philippines Emerging Markets Industry Updates

Suppliers of slot machines, baccarat table systems and other casino equipment are moving out of Macau to more welcoming markets – another sign of the damage China’s zero Covid policy has wrought on the formerly bustling gambling hub.

With demand in Macau waning, Light & Wonder, a leading provider of products used in casinos, is relocating its expatriate staff to the Philippines, which has become its top market in Asia and where it is opening a new office.

Another equipment maker from Japan is also shifting employees to the Philippines and Singapore after seeing revenue plunge about 90 percent in Macau as casinos shelved purchasing plans amid a prolonged industry slump.

Macau’s casinos are not buying any new equipment until they get licenses to continue operating at the end of the year.

And without fresh sales Light & Wonder is only getting limited revenue from maintenance and technical support, said Ken Jolly, the American company’s Asia vice president and managing director.

To secure new licenses and as part of Beijing’s push to reduce Macau’s reliance on gambling, casino operators must commit to investing in non-gaming areas such as Chinese medicine and technology.

That will force them to cut spending on low-yielding gaming machines, said Daniel Cheng, a former executive at gaming companies including Hard Rock International.