The year ahead - Harmen Brenninkmeijer

For 2017 the Macau market will continue to stabilize and grow, but the operators will have to work harder to get the players to come back. The future looks good with regards to the general mass player but the VIP’s will be careful in how, where and what they play.

The certainty of them coming and playing the same numbers as they did in the years previously can not be counted upon. My prediction is that more focus has to be given to the mass and premium mass players to make them feel they get value for their money. The junkets will have to work harder and the controls they will be facing will make it more challenging to fill their VIP rooms.

My prediction is that more focus has to be given to the mass and premium mass players to make them feel they get value for their money. The junkets will have to work harder and the controls they will be facing will make it more challenging to fill their VIP rooms.

From the suppliers point of view, more technology will be sold and the electronic table games will be sold in greater quantities. However, prices will remain stagnant and the operators will keep on demanding primarily popular products, creating higher risks as products will have to be tested live. The DICJ promised additional measures to streamline the process which is highly necessary to provide more variety and interesting products which today have not yet appeared in the casinos. HK traffic, once the bridge is open will demand more than what is on offer today.

The PAGCOR privatization process will be painful as many employees are bound to lose their jobs, since the buyers likely can’t count on their loyalty and willingness to work as is expected in the private sector. How this will be managed and how PAGOR will transfer the properties will be key to the development of the Philippine casino industry as a whole.

The additional potential impact will be on the online industry. How will PAGCOR’s involvement be handled? Will the online operators still be able to be First Cagayan-licensed and operate from Manila or will all operations in Manila be forced to be covered by its license? If so at what cost, as today’s proposed tax is very high. The handling of this will make or break the level of confidence with the present operators. If handled wrong most will leave the Philippines and create thousands of job losses.

Note from Harmen Brenninkmeijer, managing partner at Dynamic Partners.

Other notes from: 

Andrew Klebanow, Global Market Advisors

Augustine Vinh, president and CEO of Stellar Management

Ben Lee, managing partner of IGamiX Management & Consulting

David Green, CEO of Newpage Consulting

Ebbe Groes, CEO of EveryMatrix

Jay Sayta, founder of Glaws.com

Michael Zhu, vice president, operations, planning, analysis of Innovation Group

Mike Santangelo

Sam Sheng, director of Double Square Consulting

Steve Gallaway, Global Market Advisors

Sudhir Kale, CEO of GamePlan Consulting

Tim Shepherd, co-founder and president of business development at Silver Heritage Group

More news from this jurisdiction

Macau, PhilippinesWednesday, Mar 22, 2017

Gaming suppliers, facing the challenge of changing audience demographics and new technology, need to move to “bigger and brighter” machines to lure clients into casinos, industry experts say.

Cambodia, Philippines, MacauThursday, Jan 05, 2017

In 2017 I think we will continue to see the larger players in Macau flex their muscles internationally looking for ROIC no longer available in Macau.

Macau, PhilippinesTuesday, Jun 28, 2016

Philippines-based casino Solaire Resort and Casino has taken its brand campaign and promotions to Macau.

Macau, PhilippinesMonday, May 18, 2015

"We are very proud of our colleagues, and we hope they will gain confidence and friends through this participation."

Macau, PhilippinesThursday, May 14, 2015

"The All Asia Dealers Championship is one way to reward and recognize our outstanding team members and this would give them a chance to associate themselves with other exceptional dealers from around the globe and give them a sense of pride in the work they do.”

Mainland China, Macau, Philippines, ElsewhereThursday, Sep 18, 2014

Casinos around Asia and in the United States are benefiting from Beijing’s crackdown on corruption and extravagance by attracting Chinese high rollers with a wide range of incentives and benefits including private jets and special delicacies.

PhilippinesWednesday, Dec 13, 2017

E-games operator PhilWeb Corporation on Tuesday announced it has acquired three PAGCOR eGames sites.