By Sudhir Kale*

The last five years have seen a tumultuous business environment for casino operators in Australasia. Barely five years ago, CFOs of two of the largest concessionaires in Macau were predicting annual revenues in excess of US$100 billion by 2020. After all, they argued, less than five percent of the adults from China had been to Macau, and hence the “true” long-term potential was almost limitless.

The last five years have seen a tumultuous business environment for casino operators in Australasia. Barely five years ago, CFOs of two of the largest concessionaires in Macau were predicting annual revenues in excess of US$100 billion by 2020, driven by the China VIPs. Attracted by China's massive potential many of the region's casino operators placed their focus on the one market. Now that's changing and marketing strategies need to change too. 

 



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As Macau’s gross gambling revenue has slumped, operators have been paring costs to the bone to protect margins, with the first casualty usually being spending on marketing and player reinvestment.

As Macau’s gross gambling revenue has slumped, operators have been paring costs to the bone to protect margins, with the first casualty usually being spending on marketing and player reinvestment.

However, this may be a short-sighted approach that will cost dearly in the longer term.

 



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Loyalty programs have been in vogue in the casino industry for around thirty-five years, but are operators in Macau and Singapore getting the most from their offerings?

 

Loyalty programs have been in vogue in the casino industry for around thirty-five years, but are operators in Macau and Singapore getting the most from their offerings?



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