Macau Casino Industry Starts Focusing on Mass-Market Gamblers

24 February 2014

The VIPs who gambled big at Macau casinos have always been the segment on which casino gaming suppliers focused. The casino industry in Macau will always be known for the luxurious services and opulence that surrounds everything from hotel rooms to grand casinos. Even so, it seems like in 2014, casino operators might start focusing on the mass-market segment of gamblers. This is a consequence of the fact that VIP gamblers’ expectations get higher with each day that passes, but VIP casino profit growth is decreasing.

This is why casino gaming suppliers who run gambling businesses in Macau are starting to introduce solutions for the mass-market gamers. In the fourth quarter of 2013, mass-market casino gambling in the region was up to 27 percent of the entire gross gaming revenue in Macau. On the other hand, the high-roller segment ended the year 2013 with a 15 percent revenue rise during the fourth quarter.

Financial services firm Morgan Stanley also conducted a report in which it was stated that the mass-market Macau casino gamers’ growth rate would account for 28 percent of the total market, while the high-roller gamer growth rate would only reach 13 percent. This is why world-renowned casino operators are already starting to shift towards offering more solutions to the mass-market segment. The mass-market growth has managed to influence the Macau casino industry and casino gaming suppliers in such way that profits have gone through the roof for several operators. For example, Wynn Resorts announced that their profits increased by a whopping 92 percent year-on-year, mainly due to the large amount of mass-market gamblers.

Mass gaming is also expected to grow thanks to the development of cheaper transport services that will allow more gamblers to visit Macau. A new rail system that will link different parts of Macau and near-by regions, and a bridge that will connect Hong Kong to Macau, will allow faster and easier transportation. Furthermore, casino gaming suppliers are also looking forward to develop new solutions for mass-market gamblers. Investors are expected to develop cheaper and more convenient hotel rooms and entertainment venues in the near-by Guangdong province, which will also attract more visitors to Macau gambling establishments.

Macau is known as being the world’s gambling Mecca, and that status is not expected to change anytime soon. Despite the fact that authorities are trying to promote the region through its history and culture, the main profits of the region will be generated by the casino gambling sectors for a long time. Furthermore, gaming insiders and analysts explained that the expansion of gambling in neighboring countries will not influence Macau’s gaming results in a significant manner.

24 February 2014

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