Citigroup Memo Highlights Macau Gaming Sector Resilience; Sands China Regains Top Market Share

A new report from Citigroup states that the Macau casino industry had a successful April, especially about getting ready for Labor Day. Interestingly, Sands China has emerged as the market leader in the premium mass area.

As the Labor Day holiday, which falls on May 1st and 5th and is a major source of travel from the Chinese mainland, draws near, analysts are keeping a close eye on market developments.

According to Citigroup’s research of the April premium mass table survey, the average premium mass wager per player decreased by 5% over the previous year. The massive 60% rise in players, however, overshadows this decline and results in a 53% increase in total wager year over year.

According to Citigroup analysts, “the timing of this year’s Labor Day holidays may see a shift in Macau’s gaming landscape, potentially with fewer premium mass players in April,” underscoring the robustness of luxury spending in mainland China.

Citigroup’s research team found 18 high rollers, or “whales,” at five out of six casino operators. These players wagered at least HK$100,000 ($12,773) during the survey.

Among these, a player at the high-limit section of MGM Cotai bet HK$700,000 ($89,410), and others at the Horizon room of Sands Plaza and Galaxy Macau were among the standout performers.

Prior to this, Citigroup predicted that Macau’s Gross Gaming Revenue (GGR) for April would be MOP18.5 billion ($2.29 billion), a 5% decline from March but a 26% increase year over year.

Sands China now holds a 25% market share in total wagers, up from 17% the previous month, demonstrating its dominance in the premium mass category.

For the third month running, the Apex room at Plaza has been the top performer in Citigroup’s premium mass table survey, with an average wager per player of HK$97,182 ($12,413).

Melco, on the other hand, has grown its market share to 14% as a result of notable improvements at City of Dreams as a result of premium mass product realignments.

Though observations suggest less activity at its peninsula casino in comparison to Wynn Palace, Wynn still holds a 15% market share.

Additionally, the research team at Citigroup found a notable increase of smart gaming tables in the Londoner casino’s mass concourse at the Londoner Macao, suggesting a calculated investment in enhancing the gaming environment.

Even as the gaming landscape changes, industry observers and industry participants continue to focus on Macau as they get closer to the Labor Day holiday and its potential effects on the industry’s performance.

Original Story by: Asian Gaming Brief