Good Morning. Last month, Macau’s casino concessionaires posted their results for the 2021 calendar year to varying degrees of optimism. Though results between the six operators varied, one common theme from their respective annual reports and management discussions was the impact that Macau’s junket downturn may have on their bottom line. We asked Alidad Tash of 2NT8 and Eric Coskun of IGamiX Management & Consulting what needs to happen in the mass market for Macau to fill the void left by junkets.
What you need to know
- Bloomberry Resorts posted a 50 percent gain in 4Q21 gross gambling revenue, fuelled by strong domestic support for its mass market operations.
- The Philippines remains on FATF’s gray list after its latest review, with the AML body continuing to express concern over casinos and junkets.
- Crown Resorts’ Group Chief Risk Officer Steven Blackburn concedes the company was guilty of many of the allegations brought by AUSTRAC, but said extensive work has already been carried out to solve the problems.
- Forward Fashion is collaborating with Treasure Island Resort World Hotel to build a new luxury shopping and entertainment center, including Macau’s first Galeries Lafayette.
On the radar
- Macau demand for manpower remained low in 4Q21.
- GKL sales drop almost 30% from prior month, dragged by bad luck.
- Macau March GGR seen down 75% from 2019, first week flat: Bernstein.
What the papers say
- Authorities rescue 44 Indonesians working in Sihanoukville online gambling.
- $163,500 of IPI funds seized to satisfy claims of supplier, Red Coral.
- Exodus from Hong Kong continues with 22,965 departures last week.
AGB Intelligence
BY THE NUMBERS
Mass could make up for lost VIP by 2025, more work needed
Macau’s mass-market is expected to make up three-quarters of total gross gambling revenue (GGR) by 2025, though more rooms, longer stays, and more gambling expenditure per visitor will need to be achieved for further growth, according to analysts. The six operators will all need to fill the void left by the collapse of the junket market and Eric Coskun of IGamiX Management & Consulting and Alidad Tash of 2NT8 outline some possible scenarios of just how much the mass segment and visitation will need to expand to fill the hole.
Industry Updates
- Wynn to host Asia’s 50 Best Restaurants 2022 once again.
- Pragmatic Play signs accord to supply premium slots to Admiral Casino.
- Slotegrator cancels ICE participation due to Ukraine concerns.
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