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Hong Kong and Macau advance towards digital currency

Viviana Chan
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Hong Kong and Macau advance towards digital currency

Macau and Hong Kong monetary authorities have announced significant steps towards introducing digital currencies in the near future.

In Macau, the announcement was made by Chief Executive Ho Iat Seng during an international financial conference, which was also attended by China’s Central Bank director, Pan Gongsheng.

The Macau Monetary Authority (AMCM) stated that it is progressing with the development of the “digital Macau pataca” (e-MOP), with plans to build a prototype system with basic functions by the end of the year. 

It added that the features and applications of the e-MOP will be showcased to the public later this year.

Meanwhile, the introduction of the e-HKD may have a more profound impact on Macau’s gaming industry, as the Hong Kong dollar is widely used in gambling transactions in Macau.

According to reports, the Hong Kong Monetary Authority (HKMA) has selected 11 firms from various sectors to test offline and cross-border payments as part of the second phase of the e-Hong Kong dollar (e-HKD) pilot program.

The Macau government announced plans to incorporate digital currency as a legal tender in 2022. However, no details have been provided so far, nor is there any information on whether such digital currency will be permitted for use in Macau’s casinos.

Macau visitor arrivals from IVS newly added cities grow by 17.1% in August

Viviana Chan
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Macau visitor arrivals from IVS newly added cities grow by 17.1% in August

Macau’s visitor arrivals from the ten cities recently added to the Individual Visit Scheme (IVS) saw a 17.1 percent increase in August compared to the same month last year.

These cities contributed 45,599 visitors, demonstrating the positive impact of their inclusion in the scheme.

Of these visitors, 51.9 percent (23,652) traveled under the IVS, reflecting strong interest in the scheme’s expanded scope. The rise in arrivals from these new cities played a crucial role in boosting overall visitor numbers during the busy summer season.

According to data from the Statistics and Census Service (DSEC), Macau welcomed 3,651,731 visitors in August 2024, setting a new monthly record. This represents a 13.3 percent increase year-on-year and a slight rise of 0.8 percent compared to August 2019, before the pandemic. Month-on-month, arrivals grew by 20.9 percent, underscoring the significant recovery of Macau’s tourism sector during the summer holiday.

MACAU-Visitor-Arrivals-August-2024

Visitors from mainland China surged by 18.5 percent year-on-year, totaling 2,752,322 in August. Notably, those traveling under the IVS reached 1,466,190, marking a 9.3 percent increase.

Visitor arrivals from Hong Kong decreased by 6.8 percent year-on-year to 663,449, while visitors from Taiwan experienced a notable increase of 26.7 percent, reaching 73,629.

Macau Visitor Arrivals_August 2024
Macau Visitor Arrivals August 2024

Comparatively, the number of mainland Chinese visitors in August 2024 was 4 percent higher than in August 2019, with Hong Kong and Taiwan visitor levels rebounding to 99.6 percent and 77.3 percent, respectively, of their pre-pandemic figures.

Macau ranked as the most satisfying destination for Chinese travelers in 1Q24

International visitors return to 75.3% of the 2019 level

International visitors also showed positive trends, rising 25.5 percent year-on-year to 162,331 in August. This figure represents 75.3 percent of the 2019 level, reflecting a steady recovery in long-haul and regional markets.

In Southeast Asia, arrivals from the Philippines (35,180) surged by 31.7 percent, while visitors from Malaysia (7,647) and Singapore (5,806) saw modest growth. However, arrivals from Indonesia (10,054) and Thailand (6,383) declined by 10.1 percent and 23 percent, respectively.

In Northeast Asia, South Korea and Japan showed strong gains, with arrivals increasing by 61.4 percent and 24.8 percent year-on-year, respectively.

From January to August 2024, Macau’s visitor arrivals grew by 32.7 percent year-on-year, reaching 23,392,903, approximately 85.3 percent of the pre-pandemic levels in 2019.

International visitors totaled 1,503,936, recovering to 68.9 percent of the 2019 figure.

Citigroup cuts Macau’s September GGR forecast to $2.12B amid VIP hold drop

Viviana Chan
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Citigroup cuts Macau’s September GGR forecast to $2.12B amid VIP hold drop

Macau’s gross gaming revenue (GGR) for the first 22 days of September has reached approximately MOP12.15 billion ($1.51 billion), according to data from industry sources cited by Citigroup. 

Despite this, Citigroup has lowered its forecast for the full month, now projecting September GGR to reach MOP17.0 billion ($2.12 billion), down from an earlier estimate of MOP17.75 billion ($2.21 billion).

Macau GGR August 2024

The average daily run-rate over the first 22 days was MOP521 million ($64.9 million), a slight decline of 3 percent compared to the previous week’s rate of MOP536 million ($66.8 million). 

A notable factor behind this dip is the VIP hold rate, which has been falling for two consecutive weeks. VIP volumes have reportedly dropped 11 to 13 percent month-on-month, while the mass market has also seen a similar decline of 11 to 14 percent month-on-month.

Citigroup suggests that some players may be postponing their trips to Macau until the National Day Golden Week in early October, contributing to a softer-than-expected September performance.

The revised forecast of MOP17.0 billion ($2.12 billion) for September represents a 14 percent year-on-year growth but is only about 77 percent of the levels seen in September 2019. 

Citigroup now anticipates an average daily run-rate of MOP606 million ($75.5 million) for the remainder of the month.

As the market gears up for the National Day Golden Week, the recovery of Macau’s gaming sector will depend heavily on whether postponed trips and a weaker VIP hold rate continue to impact performance.

Thailand’s ruling party advocates entertainment complexes to boost economy

Viviana Chan
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Thailand’s ruling party advocates entertainment complexes to boost economy

Thailand’s ruling Pheu Thai Party is championing its casino-entertainment complex initiative as a means to legalize underground gambling and generate tax revenue for the government.

Paetongtarn Shinawatra, Thailand
Prime Minister Paetongtarn Shinawatra

According to a statement on Pheu Thai’s webpage cited by the Bangkok Post, the party asserts that this project could significantly contribute to the national economy, with potential tax revenues surpassing 50 percent of GDP, thereby supporting education and other vital initiatives.

Entertainment complexes featuring casinos are positioned to help the country engage with the burgeoning fun economy, estimated at $13.7 trillion. This initiative is part of the broader policy outlined by Prime Minister Paetongtarn Shinawatra in parliament on September 12th.

Historically, efforts to legalize such economic transactions have faced resistance, but recent government studies suggest a growing openness to the concept. The House committee’s report emphasizes that the fun economy—which encompasses tourism, sports, entertainment, and the MICE (meetings, incentives, conferences, and exhibitions) sectors—has been steadily expanding.

The global market for casino-based entertainment was valued at approximately $1.5 trillion as of 2022, with projections indicating it could rise to $2.2 trillion by 2028. This growth underscores the potential for significant income generation for the country through proper legalization and taxation of casinos.

The government is advancing legislation to permit the operation of casinos within these entertainment complexes, with the first casino anticipated to launch as early as 2029.

The Finance Ministry has completed the draft of the Entertainment Complex Act, which will undergo a public hearing as stipulated by the constitution. Following this, the bill will be submitted to the cabinet for review.

The proposed legislation outlines 65 sections, stipulating that operators must obtain a license valid for up to 30 years, with an initial registration fee of THB5 billion ($152 million) and an annual payment of THB1 billion ($30 million).

Assessments of each complex will occur every five years, and licenses may be renewed for an additional decade. Individuals under 20 years old will be prohibited from entering these venues, while Thai citizens will be required to pay a THB 5,000 ($151) entrance fee.

A policy board, chaired by the prime minister, will be established to govern the regulations of these gaming complexes. Estimates suggest that the project could generate at least THB12 billion ($364 million) in tax revenue in its first year alone.

Five locations have been identified as potential sites for the complexes: two in Bangkok and one each in the Eastern Economic Corridor, Chiang Mai, and Phuket. Meanwhile, some reports also claim that the new government may develop up to seven casino hotels, three of which will be located in the capital city of Bangkok.

Accelerating gaming spending in Macau amid China’s weak economy: Citigroup

Viviana Chan
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Accelerating gaming spending in Macau amid China’s weak economy: Citigroup

A recent table survey from Citigroup reveals a significant acceleration in gaming spending in Macau, with the average wager for high-stakes players—commonly referred to as ‘whales’—increasing by 43 percent.

A ‘whale’ is defined as a player whose bet size ranges from HK$100,000 to HK$500,000 ( $12,800 to $64,000) per hand or more.

According to the survey data focused on the premium mass gaming sector, the number of whales has seen an impressive uptick. In the first year-to-date analysis, 228 whales wagered a total of HK$43.3 million ($5.6 million), surpassing the previous fiscal year’s total of HK$53.97 million ($6.9 million) from 224 whales. This indicates a robust willingness to spend among the wealthiest gamblers in Macau.

The average wager for Players of the Month reached HK$655,000 ($84,100), a remarkable increase compared to the FY23 average of HK$457,000 ($58,678). Notably, this trend appears to be accelerating, with the average wager over the past five months climbing to HK$728,000 ($93,474).

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

Growth in premium mass players

In addition to high rollers, the survey highlights a significant recovery in the premium mass segment. The total wager observed in September 2024 amounted to HK$11.9 million ($1.53 million), representing a 36 percent year-on-year increase from HK$8.8 million ($1.13 million) in September 2023. The number of premium mass players surged by 42 percent, reaching 613.

Although the increase in player count has diluted the average wager per player by 5 percent year-on-year, this influx of casual players has contributed to a notable rise in overall gaming activity. Analyst George Choi observes, ‘Despite the weak economy in China, Macau is still attracting players who are willing and able to spend.’

Citigroup‘s Whale Watch shows that the number of whales betting HK$100,000 or more has increased to 21, up four from September 2023. A standout player at StarWorld’s Horizon made a bet of HK$640,000 ($82,170), with multiple instances of whales placing substantial bets across various venues.

Sands China has emerged as a leader in the premium mass sector, capturing a 26 percent share of total wagers, up from 22 percent in August 2024. Solid gaming volumes were observed at the Londoner casino, despite ongoing renovations. 

Meanwhile, Melco Resorts & Entertainment has initiated a rebranding program for its premium mass products, yielding a 17 percent share—significantly higher than the 13.5 percent average seen in previous months.

In a bid to elevate the efficiency of gaming, all 43 tables at Galaxy Macau‘s Pavilion North Room and 21 tables at Star World’s Horizon Room have been upgraded to smart gaming tables, reflecting a commitment to innovation in the gaming landscape.

OKTO showcases iGaming payment innovations at SBC Summit Lisbon

AGBrief Editorial
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OKTO showcases iGaming payment innovations at SBC Summit Lisbon

OKTO is set to showcase its latest payment services tailored for the iGaming sector at the SBC Summit in Lisbon. The company invites partners and industry professionals to visit its booth, E161, from September 24 to 26 to explore its cutting-edge unified payment platform and solutions.

Attendees will have the opportunity to experience a comprehensive suite of payment and financial services that offer instant pay-in and payout capabilities, enhancing both user convenience and experience.

Visitors to OKTO’s booth can look forward to live demonstrations of the company’s full range of services. Highlights include OKTO.WALLET and OKTO.CASH which cater to the unique needs of iGaming operators and their customers through a flexible, integrated payment ecosystem. This strategic combination of OKTO.CASH and OKTO.WALLET into an interdependent offering creates a closed-loop cash-in and cash-out ecosystem. OKTO.CASH simplifies cash-to-digital transactions, enabling quick and easy cash pay-ins.

Meanwhile, OKTO.WALLET enhances this ecosystem by offering instant withdrawals for OKTO.CASH transactions while offering additional pay-in options. Together, these solutions empower operators to meet diverse customer preferences, streamline payment processes, and elevate the overall iGaming experience.

A standout feature at the booth will be OKTO’s payment orchestration service, now available in the dynamic Latin American market and India. This service simplifies the integration process for operators by offering a single, unified solution that supports multiple local payment methods, enabling seamless, instant transactions across various regions.

Additionally, OKTO’s innovative FX services and cross-border capabilities in LatAm, India and beyond provide access to competitive foreign exchange rates, allowing merchants to manage currency conversions efficiently and mitigate associated risks.

OKTO will also present a broad range of specialized services aimed at meeting the unique needs of iGaming operators in Brazil. The offerings include Advanced Banking Solutions powered by OKTO Bank, ensuring smooth fund transfers, robust financial advisory services, and compliance with local regulations.

In the spotlight for the Brazilian market is OKTO’s latest PIX line-up. These groundbreaking solutions harness the power of open banking to streamline user onboarding and transaction processes, leveraging the country’s instant payment system, Pix, to deliver swift and secure transactions.

Simon Dorsen, Chief Commercial Officer at OKTO, commented on the company’s participation: “We are excited to present our next-generation payment solutions at the SBC Summit in Lisbon. Our innovations are designed to empower iGaming operators with seamless and secure payment capabilities, enhancing the user experience. With a solid foundation of numerous established clients, we aim to drive further growth together with them and enter new markets. Additionally, we look forward to establishing new collaborations in both payments and iGaming. We can’t wait to welcome and connect with our partners, industry friends, and peers.”

Visit OKTO at booth E161 at the SBC Summit in Lisbon. To schedule a meeting or learn more about OKTO’s offerings, please submit the form.

Wynn Macau secures three-year loan extension to September 2028

Viviana Chan
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Wynn Macau secures three-year loan extension to September 2028

Wynn Macau, a casino operator in Macau, announced that its lenders have agreed to extend the maturity date of a portion of its outstanding loans under an existing revolving credit facility.

The new maturity date is now set for September 16th, 2028, granting the company an additional three years to repay the loans.

This update was disclosed in a Monday filing with the Hong Kong Stock Exchange.

The revolving loan facility—valued at approximately $1.5 billion—was originally announced in September 2021, with a maturity date in September 2025. 

The agreement involves Wynn Macau and its wholly owned subsidiary, WM Cayman Holdings Ltd II, with the Bank of China Ltd, Macau Branch acting as the agent. The credit facility is provided by a syndicate of banks.

Wynn Macau operates two key properties in the region: the Wynn Macau resort on the city’s peninsula and Wynn Palace in the Cotai district. The company is part of Wynn Resorts, a U.S.-based casino developer.

In the filing, Wynn Macau also noted that “customary extension fees and expenses” will be paid by WM Cayman II in connection with the amended facility and related agreements.

In other recent developments, Wynn Macau declared an interim dividend of HK$0.075 ($0.01) per share in August.

PAGCOR’s ‘Bingo for a Cause’ boosts funding for Local Government Units

AGBrief Editorial
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PAGCOR’s ‘Bingo for a Cause’ boosts funding for Local Government Units

The Philippine Amusement and Gaming Corporation (PAGCOR) said it has tweaked its “Bingo for A Cause’’ program to help local government units (LGUs) and non-government organizations (NGOs) raise more funds for their socio-civic programs. 

Maria Teresa Ocampo, Bingo Department, PAGCOR
Maria Teresa Ocampo, AVP, Bingo Department, PAGCOR

PAGCOR Assistant Vice President Maria Teresa Ocampo said the state gaming agency has approved new packages that will allow LGUs and NGOs to earn as much as 50% share from proceeds of bingo events to be conducted with PAGCOR.

“The revised bingo package will give our partners the option to sell tickets from as low as Php100 to Php1,000 each, depending on the package that they choose,” she said. “The proceeds will even go higher depending on their ticket sales.”

Ocampo, who heads PAGCOR’s Bingo Department, said the ‘Bingo for A Cause’ project will also allow communities and organizations to enjoy the fun and thrill of bingo games legally while contributing to worthy causes.

PAGCOR

“Like any game of chance, only PAGCOR has the mandate to authorize bingo activities, hence bingo games without PAGCOR’s permission are illegal,” she said.

“We thus remind our partner communities and organizations to first coordinate with PAGCOR’s Bingo Department if they plan to organize bingo events and explore partnership opportunities with us,” she added.

Daily Asia Gaming eBrief: Social impact concerns of Thai IR bill raised

AGBrief Editorial
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Daily Asia Gaming eBrief: Social impact concerns of Thai IR bill raised
Good morning. Listening to the people. Thailand’s draft bill for entertainment complexes is moving forward, with potential revisions to location and operational details expected before its introduction next year. This comes as concerns about social impacts and gambling addiction have been raised by industry leaders, highlighting the need for clear regulations and careful planning. Meanwhile, the Australian government is considering significant restrictions on gambling advertising, including a complete ban on digital ads and a prohibition on television commercials before and after sports broadcasts. Moving to the UAE, MGM Resorts CEO Bill Hornbuckle has confirmed the group has already officially submitted a request for a license in the country.

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Thailand’s draft bill for entertainment complexes is progressing, with potential revisions to details like location and operational requirements expected before its introduction next year, following public hearings held in August. Deputy Finance Minister Julapun Amornvivat acknowledges the need for adjustments based on feedback, highlighting the importance of transparency in the process, while industry leaders offer mixed reactions regarding the potential benefits and risks associated with the bill.

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LuckyStreak awarded Malta Gaming Authority recognition

Nelson Moura
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LuckyStreak awarded Malta Gaming Authority recognition

LuckyStreak, the Riga-based live casino provider and igaming content aggregator has been granted Malta Gaming Authority (MGA) recognition and is now approved under the jurisdiction to provide B2B services to MGA-licensed operators.

The Recognition Notice grants LuckyStreak an MGA B2B Critical Supply License to provide casino games and sports betting products and services. This Recognition Notice acknowledges that LuckyStreak meets the necessary criteria and safeguards required by Maltese law, and is equivalent to a local MGA licence, based upon LuckyStreak’s Latvian Gambling Services Licence.

The MGA’s Recognition Notice approach stems from its dedication to facilitating a harmonised, cross-border iGaming regulatory framework within the EU/ EEA, streamlining growth for licensed operators.

LuckyStreak is now able to provide its live dealer games and content aggregation services within the MGA’s globally-renowned framework.

Ady Totah, LuckyStreak CEO and Co-founder said: “We’re delighted to be awarded MGA Recognition as it is another major milestone in our regulatory expansion. Malta is a world-renowned licensing jurisdiction, setting the highest standards of transparency and fairness for players. It is testament to LuckyStreak’s commitment to quality, integrity and compliance, and we look forward to working with world-class MGA-licensed operators to continue our successful growth strategy.”

Rory Kimber, LuckyStreak Commercial Director said: “We’re immensely proud to have been awarded the opportunity to work in the jurisdiction, and we’re looking forward to working with the world’s most prestigious igaming brands, and having our games and providers appear on their casinos. Malta is a critically important and highly regarded gaming hub and this enables us to significantly extend the reach of our world-class content and services to highly regarded igaming brands.”

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