Hopes high for Macau after 2-year losing run
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ROBOT roulette dealers, animated playing cards and a gaming table that shakes its own dice were on show in the gambling hub of Macau yesterday as experts forecast a two-year casino revenue downturn could be coming to an end.
The atmosphere was buoyant as about 200 exhibitors showcased their products at the Global Gaming Expo Asia — from miniature horse-racing tables to colorful craps machines sporting giant golden dragon sculptures.
Casino revenues in Macau continued to fall in April, marking 23 months of consecutive decline due to an economic slowdown in China and a corruption crackdown by Beijing. But the 9.5 percent year-on-year drop, which put revenues for April at 17.34 billion patacas (US$2.2 billion), was less than analysts’ expectations. Operators see a glimmer of hope that the tide of losses could be turning.
The stabilization comes as the city seeks to shift toward the family-friendly mass market to make up for Chinese mainland high rollers who are staying away due to the corruption crackdown by President Xi Jinping, which has curbed public extravagance.
The hard-hit VIP sector comprised the bulk of gaming income in the city.
Revenues could be back on the rise by the end of this year, helped by the opening of new casino resorts, Aaron Fischer, an analyst at brokerage CLSA, said in a speech at the exhibition.
“Macau is transforming away from its first version. It’s really moving away from VIP to lower-value mass market customers,” he said.
The Wynn Palace and United States casino mogul Sheldon Adelson’s The Parisian are slated to open next year.
“The sentiments have become quite bullish of late. The market is showing signs of bottoming out,” gaming analyst Ben Lee said ahead of the event.
But authorities and casino operators must do more to focus the industry on mass market consumers, he said.
“Macau currently still does not have the infrastructure to attract the family segment. We are talking about logistics, attractions, language and plain old service friendliness.”
The enclave saw the opening of two mega hotel and casino resorts last year, aimed at mass market visitors.
Studio City, which boasts the world’s first figure-of-eight roller coaster, launched in October, with an event attended by Robert De Niro, Martin Scorsese and Leonardo DiCaprio.
That came hot on the heels of the opening of Galaxy Phase 2 last spring, with a sprawling rooftop water park complete with river rapids.
The gambling hub overtook Las Vegas as the world’s casino capital in terms of revenue after the sector was opened to foreign competition in 2002. It still leads its US counterpart.
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