Good Morning. For nearly a decade, Macau has been trying to shake off its gaming-heavy image in China, but the mind is stubborn and experts believe there’s going to need to be a lot more time and money invested by Macau’s operators and the MGTO to achieve this. In today’s Deep Dive, we look at the strategies Macau need to employ to shift their economy once and for all.
For our Australian and New Zealand readers, on the occasion of Anzac Day, we commemorate all those who have served.
What you need to know
- SJM Holdings is likely to have seen a gain in market share in 1Q22 due to the ramp-up of its Grand Lisboa Palace, although its EBITDA for the quarter is still likely to be negative, Credit Suisse analysts said.
- Analysts at J.P Morgan have raised concerns about SJM Holdings’ liquidity due to a continued hold-up in its refinancing plan.
- MGTO director Maria Helena De Senna Fernandes says she is hoping Macau will see more than 25,000 visitors per day during the May Golden Week holiday.
- Singapore will be axing its Covid-19 pre-departure tests for visitors entering Singapore from Tuesday, whilst it will also be relaxing rules relating to social distancing and capacity.
On the radar
- Macau March visitor arrivals down 19.6% from Feb.
- Meghalaya says gambling will not be available for local residents.
What the papers say
- Digital casino transactions are good for casino operations: NIGA
- 188 Indonesian citizens exploited for gambling in Cambodia since 2021.
- Nevada opens investigation into RWLV over gambler allegations.
- Austcham to host talk on Macau’s gaming law reform.
Macau will need to work harder to shake off its gaming-centric image in China, but the road will be long and capital-intensive, and may not be top of mind as the industry struggles through its third year of the pandemic. For nearly a decade, Macau has been attempting to shift its economy away from purely gaming. Whilst it made some progress due in part to the pandemic, industry observers have said that the overall speed of change does not appear to be to Beijing’s liking, prompting the central government to apply more pressure to see these changes through.
- Yggdrasil names Björn Krantz as new CEO.