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HomeNewsMacauMacau casinos stopping free snacks could reduce traffic, minimal GGR impact: MS 

Macau casinos stopping free snacks could reduce traffic, minimal GGR impact: MS 

Morgan Stanley notes that Macau casinos ceasing to offer free snacks could reduce foot traffic. However, this measure is expected to have only a small impact on gross gaming revenue (GGR), as it mainly discourages visitors who come to casinos for free snacks but never gamble. Gamblers will still have easy access to free snacks.

According to an investment memo released on Wednesday, the same day Macau casinos reportedly stopped offering free snacks in casino areas, analysts Praveen K. Choudhary and Gareth Leung indicated that Macau gaming stocks fell by 3-7 percent on Wednesday.

“We believe this decline is related to casinos ceasing to offer free snacks to non-gamblers/non-members,” they noted.

Morgan Stanley mentions that local small and medium enterprises (SMEs) may have complained to the local gaming regulator, the Gaming Inspection and Coordination Bureau (DICJ), about the impact of free snacks in casinos on their businesses.

The research team, citing gaming operators, reveals that most casinos continue to provide free beverages as they did before COVID-19. However, they now require membership cards with at least one point (indicating some gambling activity) to receive free snacks.

Macau’s GGR recovery has been driven by high-end gamblers since the pandemic, reflected in mass GGR per Chinese visitor being 34 percent higher in the first quarter of 2024 compared to 2019.

In a previous report by AGB, industry experts also noted that free offerings do not align with a strategy focused on premium mass clientele.

Initially, different gaming operators in Macau joined this price war-like battle due to the intensifying competition in the market. The competition reinforces the market view about intense competition—everyone has to spend to attract foot traffic so that they might earn higher GGR.

Viviana Chan
Viviana Chanhttps://agbrief.com/
Viviana Chan is an editor, interpreter, and journalist. With over a decade of experience, she writes in English, Chinese, and Portuguese. Viviana started her career in Macau-based newspapers, where she became passionate about the region's social, financial, and cultural development. Her writing focuses on the economy, emerging industries, gaming development, political affairs, and cross cultural-exchange in the business and cultural domains. She is avid for news and eager to discover and cover stories that generate public relevance.

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