Mass market to drive gaming performance in SEA: Fitch

Chinese tourism expenditure is expected to drive gaming performance in South-east Asia, with mass-market gaming tourism looking to continue growth, wrote a report from Fitch Ratings on Tuesday.

“We feel VIP tourism across the region will continue to recover, and ongoing growth in mass-market gaming tourism will support regional expansion and Australian construction. Overall, we view the APAC market as underpenetrated, at least in the mass-market segment,” wrote Alex Bumazhny, senior director at Fitch Ratings.

Fitch says it expects Macau revenues to grow in the high-single-digit range in 2018, or slightly above China’s GDP growth, led by the mass market segment.

A rising middle class in China and improving infrastructure development will support this growth, it added.

In Singapore, with GGR grew around 10 percent in 17H1, after falling 30 percent in 2015-2016. Fitch says it expects GGR to continue to grow in 2018, driven by a sustained growth in visitor arrivals.

The Malaysian gaming market will likely remain stable, says Fitch, underpinned by a domestic, mass-market focus at Resorts World Genting.

Fitch noted that visitor arrivals at the resort were steady in 1H17, but are likely to grow in 2018 as more attractions open following redevelopment.

Finally, Fitch says it expects Australian gaming operators’ VIP revenue to stabilize in 2018, following a 34 percent decline in 2017 as a result of “Chinese regulatory actions”. Fitch here is referring to the arrest of Crown resort employees in 2016 over illegal marketing of casinos in the country.

“However, resilient underlying domestic demand, supported by a favorable regulatory environment, continues to be the main factor supporting our expectation of stable cash and EBITDA generation in 2018,” it wrote.

More news from this jurisdiction

South East AsiaSunday, Dec 10, 2017

Asia Live Tech has announced a new iGaming Revenue Sharing Pool program, allowing operators to earn additional revenue when they use Asia Live Tech’s iGaming Software.

Elsewhere, Japan, Macau, South East AsiaWednesday, Nov 29, 2017

Spectrum Gaming Group says it predicts 2018 to be the most significant, with political, technological, demographic and regulatory changes expected for gaming markets around the world.

South East AsiaThursday, Sep 28, 2017

EveryMatrix has announced the appointment of Johan Westberg as head of sales in Asia.

South East AsiaTuesday, Sep 19, 2017

Football matches in Asia have a higher tendency to be flagged for suspicious betting, according to football betting and integrity experts.

South East AsiaSunday, May 21, 2017

While a wave of new casino openings boosted ETG growth over the last twelve months, Union Gaming analysts expect this momentum to slow through to the end of 2018.

South East AsiaFriday, May 12, 2017

Ongoing economic growth and the associated trend of rising internet usage makes Asia an important emerging market for online gambling. With other jurisdictions likely to soon join the Philippines in regulating iGaming, Asia could one day follow in the footsteps of the mature European market.

South East AsiaFriday, Mar 17, 2017

AGB interviews representatives at RGB on where they see growth in Southeast Asia over the next few years.