Macau GGR could become USD 70B within a decade
Panelists at the ongoing G2E Asia conference concur that Macau’s GGR could reach as high as $70B USD, driven by China’s policy changes, and more players from the Mainland.
Original story by Kelsey Wilhelm for Asia Gaming Brief
Speaking at the Expo, Kenneth Fong, Managing Director of Securities Research APAC for Credit Suisse, noted that the increase in GGR will also largely depend on what happens with table caps, and whether there is an annual review on the number, allowing for the five operators who actually saw their overall table cap diminished during the license re-tendering process to seek a redress.
Fong notes that the figure is “doable” depending on how operators also “transit into non-gaming as a driver for gaming revenue”, looking to convert players initially arriving for non-gaming amenities into casino customers.
Macau’s arrivals have closed at 11.6 million in the first half of the year; officials are facing a labor shortage to accommodate a summer spike.
One of the main factors contributing to this, notes veteran gaming analyst Michael Zhu, is repeat visitation – opining that players from mainland China – Macau’s primary source market – will begin to play in the city some three or four times per year.
“Regarding capacity, mainland China is an underserved market,” Zhu told a panel at the Global Gaming Asia (G2E Asia) expo in Macau on Wednesday.
Looking ahead, hotel rooms are going to be a key driver for growth, as Macau aims to replicate the Las Vegas model, despite having less than 1/6 of its hotel rooms. Fong notes that currently “we’re getting many new mass players but they have a much lower gambling spend initially – you need time to convert them.”
Malaysia is also expecting a boom in Chinese tourists, increasing confidence in operators such as Genting.
To learn more insights by the panelists at the G2E Asia conference, including how a boom would increase gaming spending, among others. Read the original story by Kelsey Wilhelm here:
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