Daily Asia Gaming eBrief: CNY fails to boost Macau’s GGR

News

AGBrief Editorial

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February 10, 2025

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Daily Asia Gaming eBrief: CNY fails to boost Macau’s GGR

Good morning. Year of the Snake off to a bad start. Macau’s gaming performance in January and during the Chinese New Year period was lower than usual, with Citigroup believing last-minute trip cancellations and U.S. tariffs on China were a factor for the downturn. Meanwhile, a Thai opposition party is set to file a no-confidence motion against the government on February 27th vowing to target the administration’s entertainment complex policy. For the Thai Sang Thai Party, the bill is a disguised effort to legalize casinos under the guise of economic development.

What you need to know

Macau’s 2025 starts slow, but Citigroup expects a recovery by mid-year, with stronger second-half GGR from events and improved sentiment.
Thai opposition launches a no-confidence debate, accusing the government of disguising casino legalization as an entertainment complex policy.

On the radar

Sega Sammy reorganizing Gaming, transferring Paradise City shares.
Macau non-gaming visitor per-capita spending falls 14.6% in 2024.
Chinese police intensify crackdown on cross-border gambling.
Fake document scheme could reveal Gov’t employee involvement in hiding POGOs.

AGB Intelligence

MACAU

Disappointing GGR for Macau during CNY as demand shrinks

Macau’s gaming performance in January and during the Chinese New Year period has fallen short of expectations, with Citigroup’s analysts reporting an average daily gross gaming revenue (GGR) of MOP589 million ($73.4 million) in January 2025, which is lower than anticipated. Contributing factors to the weak results include last-minute trip cancellations during the Chinese New Year and U.S. tariffs on China affecting demand.

Industry Updates

Major League Baseball & Sportradar extend exclusive partnership until 2032.
Greentube broadens reach in Connecticut with new game offerings.
Bombay Group welcomes new CEO Kevin McGowen, signaling a fresh era.

Corporate Spotlight

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Shopping remained the largest expenditure category, accounting for 45.4 percent of total visitor spending, followed by accommodation at 25.5 percent and food and beverages at 20.9 percent. Visitors who traveled to Macau for performances, competitions, or MICE events demonstrated relatively high per-capita spending, averaging MOP5,076 ($633) and MOP4,323 ($539), respectively.

Despite the drop in per-capita spending, total visitor spending—excluding gaming expenses—rose by 5.8 percent year-on-year to MOP75.36 billion in 2024. This increase was primarily driven by a 23.8 percent rise in visitor arrivals. Total spending by overnight visitors reached MOP62.31 billion ($7.77 billion), up 3.5 percent, while same-day visitors contributed MOP13.05 billion ($1.63 billion), marking a 17.9 percent increase.

According to official data released on Friday, visitor spending declined across several key source markets in 2024. Per-capita spending by visitors from mainland China, Macau’s main tourist source market, fell by 18.1 percent to MOP2,503 ($312). Spending by visitors from Hong Kong and Taiwan dropped by 13 percent and 8.8 percent, to MOP1,009 ($126) and MOP1,952 ($244), respectively.

In Northeast Asia, visitors from the South Korea recorded the largest decline in per-capita spending, down 33.8 percent to MOP2,405 ($300). Japanese visitors spent an average of MOP2,093 ($260), a 1.4 percent decrease.

Among Southeast Asian visitors, spending trends were mixed. Per-capita spending by Thai and Malaysian visitors fell by 22.7 percent and 15 percent, to MOP2,598 ($324) and MOP1,992 ($249), respectively. In contrast, Singaporean visitors were an exception, with their per-capita spending increasing by 6.6 percent to MOP2,834 ($353).

However, the implied spend per player is lower than expected, prompting Citigroup to revise its February 2025 GGR forecast downward to MOP18.75 billion ($2.34 billion)—just a 1 percent year-on-year increase and around 74 percent of February 2019 levels—down from the previous MOP20 billion ($2.49 billion) estimate. This implies that GGR will average about MOP620 million per day for the rest of the month.

GGR forecast revised downward

The Chinese New Year period, an eight-day public holiday in mainland China (January 28th – February 4th) and a crucial revenue driver, also underperforms.

‘Some last-minute trip cancellations by players toward the end of the CNY Golden Week’ contribute to the weak results, Choi explains.

Additionally, the implementation of U.S. tariffs on China on February 1st further dampens gaming demand. As a result, Citigroup revises its 2025 GGR forecast, lowering its projected year-on-year growth to 3 percent, down from the previous 7 percent estimate. The bank now expects first-half GGR to decline by 1 percent compared to 2024.

Higher minimum wagers at Macau casinos contribute to heightened levels of debt

Stronger recovery expected in 2H25

However, Citigroup anticipates that gaming activity will gain momentum in the second half of 2025, driven by clearer trade policies and high-profile non-gaming entertainment offerings.

‘We expect player sentiment to start recovering in 2H25 as the impact of tariffs gets absorbed,’ Choi states.

Seasonal trends, along with major entertainment events—such as the Jacky Cheung concert at Galaxy Arena in June—are expected to boost demand, with further gains anticipated during the summer holidays and October Day Golden Week.

Citigroup now forecasts second-half GGR to reach MOP119.5 billion ($14.89 billion), translating to an average daily run rate of approximately MOP550 million ($68.6 million) and a 6 percent year-on-year increase. Additionally, Macau will benefit from a relatively low base effect in the latter half of the year, following disruptions in late 2024 caused by trip postponements linked to the Andy Lau concert and the 25th-anniversary celebrations.

TST leader Khunying Sudarat Keyuraphan has strongly criticized the entertainment complex bill, recently approved by the cabinet, calling it one of the “worst pieces of legislation ever written.” She argues that the policy is a thinly veiled attempt to introduce legal casinos under the guise of economic development.

Sudarat warned that control over these complexes would be concentrated in the hands of a single board dominated by politicians, raising concerns over transparency and governance. “This policy is not about entertainment or economic growth—it’s about opening the door to legalized gambling with little oversight,” she said.

Speaking after a strategic meeting at Sudarat’s residence, Natthaphong accused the government of inefficiency, negligence, and conflicts of interest. He stated that the debate would expose the administration’s failure to address pressing social issues.

People’s Party (PP) deputy leader Sirikanya Tansakul revealed that the opposition has identified around 30 key issues for the debate, though the final list remains flexible. The opposition is determined to hold the government accountable and use the debate as an opportunity to highlight corruption and mismanagement.

Government Chief Whip Wisut Chainarun indicated that the administration would push to shorten the debate to three days. He dismissed opposition claims, stating that the government is fully prepared for the discussions and has anticipated the main points of attack.

“We’re ready for the debate and have been for some time. We’ve reviewed the opposition’s claims and will respond accordingly,” Wisut said.

Chinese authorities have also enhanced international cooperation to effectively combat cross-border gambling that targets Chinese citizens. In the past year, over 3,700 individuals—ringleaders, financiers, and key members of criminal networks—were either repatriated or persuaded to return to China.

The ministry highlighted collaborative efforts with various departments, including foreign affairs, tourism, immigration, and the People’s Bank of China, to implement diverse strategies against cross-border gambling. This includes targeting payment systems, investment schemes, and illegal lotteries, leading to positive outcomes.

Additionally, China has ramped up its fight against telecom fraud in recent weeks, engaging in bilateral and multilateral cooperation with neighboring countries such as Thailand and Myanmar to eliminate online gambling and telecom scams.

In January, the Ministry of Public Security committed to enhancing international law enforcement collaboration to address telecom fraud operations in Myawaddy, Myanmar, which borders Thailand.

Last week a successful operation led to the rescue of 61 victims, including 39 Chinese nationals, from telecom fraud facilities in Myawaddy, with Myanmar authorities transferring them to their Thai counterparts.

This development followed Thailand’s decision to cut off power, fuel, and internet services in border regions with Myanmar.

Last week, Chinese President Xi Jinping also met with Thai Prime Minister Paetongtarn Shinawatra in Beijing, in a meeting where strengthening cooperation in combating cybercrimes, particularly online gambling and phone scams, was one of the issues on the table.

Gatchalian emphasized the gravity of the situation, suggesting that agencies such as the Philippine Statistics Authority (PSA), Bureau of Immigration, Department of Foreign Affairs (DFA), and the Philippine National Police (PNP) may have been compromised. “This incident reinforces our fears regarding the infiltration of these agencies by criminal elements,” he stated.

The senator has proposed legislation aimed at enhancing the authority of the PSA and imposing stricter penalties on civil registrars involved in fraudulent activities. He also urged law enforcement to strengthen their efforts in dismantling these illegal operations.

Reports have emerged of individuals being extorted by the travel agency, with one complainant alleging she paid PHP900,000 ($15,500) to secure her fiancé’s release, while another spent PHP1.1 million ($18,945) for her husband’s freedom following a January 17 raid at a Philippine offshore gaming operators (POGO) center in Parañaque City.

During a press conference, PAOCC Executive Director Gilberto Cruz described the travel agency as a crucial element in the ongoing Senate investigation into POGOs. He revealed that the firm was instrumental in helping foreign nationals acquire government-issued documents, thereby enabling them to remain in the country amid ongoing crackdowns.

In addition to document forgery, Cruz pointed out that staff at the travel agency had impersonated PAOCC officials to extort funds, although he clarified that no actual PAOCC members were involved in these activities.

Kevin McGowen leads Bombay Group into a new era as CEO

Europe

AGBrief Editorial

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February 9, 2025

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Kevin McGowen leads Bombay Group into a new era as CEO

Bombay Group, the renowned company known for its innovative approach to luxury gaming and hospitality, is set to embark on an exciting new chapter by appointing Kevin McGowen as the new CEO.

“Time has arrived to welcome all suitable discerning players from across the globe to experience our unparalleled gaming offerings,” said Mr. McGowen as he sees Bombay Group as a global leader in redefining the gaming experience that combines cutting-edge technology, cashless systems, and private, exclusive environments to reshape the traditional casino industry. “I’m hugely impressed by the Bombay team’s dedication to elevating standards in the high-end gaming industry from a product and compliance perspective. One of my goals for the near future is to engage even broader global experience in the team,” added the new CEO Kevin McGowen.

Anita Brinke, Bombay Group — Anita Brinke, interim CEO, Bombay Group

The company’s interim CEO, Anita Brinke, has set the stage for Bombay Group’s next phase of growth as the final preparations for the opening of the unique venue are concluded, and the organisation is well-prepared for its ambitious goals.

“The ultimate goal of my work of recent years has been to realise the unique vision of a destination that is totally worth a separate journey regardless of how much one has experienced in life. Only a few weeks remain until the opening of The Burman and in combination with the Bombay Club they will complete the redefining of modern high quality entertainment. Now is a good time to pass the baton so that Kevin can give our crown jewel the final shine,” said Brinke assuredly.

Kevin McGowen, a Chief Executive has over 30 years of experience in gaming, hospitality and relationship marketing. Most recently, he served as CEO of Les Ambassadeurs, a prestigious private members’ casino in Mayfair, London. Kevin’s career spans across major global gaming jurisdictions and client feeder markets, including Las Vegas, The Bahamas, London, the Far East, and the Middle East. Kevin’s extensive experience in both land-based and online gaming will play a pivotal role in realising the Group’s ambitious vision.

The Group is also pleased to announce Dajana Tiitsaar as Chief Operating Officer. Dajana’s strong operational background and extensive knowledge of local market dynamics will play a critical role in ensuring seamless daily operations. Dajana joined Bombay Group from Enefit, an Estonian based energy company where she last held the country manager position, she also has over a dozen years of experience in tourism, hospitality and marketing. Her appointment underscores Bombay Group’s commitment to operational efficiency and long-term success.

In August 2024, Bombay Group proudly opened the Bombay Club, alongside world-class restaurant, bars, and lounges in Tallinn. Looking ahead to March 2025, Bombay is set to open its highly anticipated hotel, The Burman, in Tallinn’s historic Old Town. Dating back to 1850, The Burman is among the city’s historic gems. The hotel will open with two additional restaurants, a bakery, and a spa, further enhancing and enriching the character of Tallinn’s historic Hanseatic town. This addition will complete the full buildout of the project, cementing Bombay Group’s commitment of delivering premium world-class experiences in gaming and hospitality.

Under the new terms, Sportradar, in partnership with MLB, will exclusively distribute MLB’s ultra-low latency official data, media content, including MLB Statcast Data, and AV content across its global client network, which spans 800 sportsbook clients and 900 media companies. The continued, growing popularity of baseball in markets like Latin America and Asia, combined with the increasing legalization of sports betting, creates an opportunity for expanded utilization of MLB content and data.

To ensure the integrity of the sport, Sportradar will continue to provide best-in-class integrity services, including Sportradar’s Universal Fraud Detection System (UFDS) to monitor global betting activity, as well as offer investigative and educational support to MLB.

Additionally, Sportradar and MLB will collaborate on the creation of AI-driven products powered by player tracking data to create immersive, hyper-personalized fan experiences.

In consideration of the rights and benefits granted under the arrangement, Sportradar will pay the applicable annual license fees and MLB will be issued up to an aggregate of 1,855,724 Class A ordinary shares during the term, subject to customary terms, conditions and adjustments.

Kenny Gersh, MLB Executive Vice President, Media & Business Development, said: “Sportradar has been a great partner to MLB, particularly helping us navigate the legalization and continued evolution of the global sports betting landscape. Over the course of our partnership, Sportradar has consistently developed great products utilizing MLB’s best-in-class data. MLB is delighted to continue innovating with Sportradar to create engaging products and services for MLB fans globally.”

Carsten Koerl, Chief Executive Officer, Sportradar, said: “We are thrilled to continue our long-standing partnership with MLB, and this agreement represents a new, exciting chapter in our journey together. Our collaboration is not only about leveraging cutting edge technology and content but also working together to create innovative products that enhance fan engagement and bring fans closer to the game. By combining our strengths, we can unlock new opportunities and reach more sports fans around the globe to shape the future of sports entertainment. This deal, which is immediately accretive to our business, will drive value for our shareholders as we continue to expand margins and generate strong cash flow.”

Major League Baseball and Sportradar extend exclusive partnership until 2032

Sportradar has been an official partner of MLB since 2014. Most recently, MLB selected Sportradar’s Synergy Sports Coaching & Scouting solution to provide unparalleled sports performance analysis to the league and its 30 Clubs.

The group notes that its strategy to further develop its Gaming Business was announced last May, as the group aims to build a customer base by developing and providing gaming machines and content to Sega Sammy Creation (SSC), while ‘accumulating know-how in casino operations that also can be used for online gaming’. This was through its joint venture to operate Paradise City.

The organization now places all gaming aspects directly under SSC, including iGaming supplier GAN Limited and iGaming platform Stakelogic.

In a separate release, the group noted that is pushing back the expected closing schedule for GAN Limited to the first quarter of the company’s fiscal year ending March 2026. The deal was first announced in November of 2023 and approved by GAN shareholders in February of 2024 – being valued at $107.6 million.

The Stakelogic acquisition is also expected to be finalized in the first quarter of 2026. It’s been valued at about $141 million.

The group notes that both acquisitions are aimed at ‘entering the online gaming market, particularly the US iGaming market, which is expected to expand in the future’.

Under the new system, the company indicates it will have ‘centralized management of gaming licenses and other controls, and for collaboration among the gaming business locations scattered around the world’.

Greentube broadens reach in Connecticut with new game offerings

United States

AGBrief Editorial

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February 7, 2025

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Greentube broadens reach in Connecticut with new game offerings

Greentube, the NOVOMATIC Digital Gaming and Entertainment division, has significantly expanded its presence in Connecticut, launching its content with a further operator in the state.

This follows its initial launch in Connecticut earlier this year and reinforces the company’s commitment to the growing US market.

A wider player pool in Connecticut now has access to Greentube’s popular titles, including recently added SilverLux BigWin Spinner, Piggy Prizes™ Wand of Riches™, and Diamond Cash™ Mighty Buffalo. These games join Greentube’s already popular portfolio in the state, further diversifying the entertainment options available to slot fans.

This expansion highlights Greentube’s successful growth strategy in North America, building on established footholds in key regulated markets such as New Jersey, Michigan and Ontario. The company continues to focus on delivering its diverse and engaging content to players across the continent.

Michael Bauer, CFO at Greentube, said: “We’re thrilled to expand our footprint in Connecticut, partnering with two leading operators to bring our US portfolio of games to players in the state. This expansion in a key market is a significant step towards our goal of simultaneous game launches across all our active US jurisdictions.”

Daily Asia Gaming eBrief: CNY fails to boost Macau’s GGR

What you need to know

On the radar