Macau Takes Over as Global Leader in Casino Gaming from Las Vegas
Macau's gaming scene is experiencing a revival. In the first half of the year, the six concessionaires in Macau generated a combined GGR of $10 billion, surpassing the $7.5 billion recorded by Nevada casinos, according to Wall Street Journal.
Once upon a time, Macau was the leading casino destination globally because of its close proximity to China and the Chinese people's love for gambling. However, this status was temporarily lost during the coronavirus pandemic when casinos were closed for 15 days in 2020. The Chinese Communist Party (CCP) only lifted the country's Covid-19 restrictions in January 2023, leaving a trail of protocols that made it difficult for tourists to reach Macau.
As a result, Macau lost its crown to Las Vegas, with the US state's GGR leading Macau's for most of the pandemic.
This impressive growth may not be Macau's peak, though. Analysts predict that Macau's GGR will only reach around 100% of 2019 levels in 2023, indicating there's still room for expansion.
Macau Poised to Reclaim Throne from Las Vegas
The SAR is expected to regain its former revenue heights in the coming year, potentially widening its lead over Las Vegas. Interestingly, Macau's recent growth has been driven mainly by mass and premium-mass players, not VIPs.
Pre-pandemic, Macau's junket industry was responsible for bringing high rollers to the casinos, but it's hardly recognizable compared to the boom years of the past decade. Now, the main players are those who wager on a smaller scale.
"While high rollers are now fewer in number than when Macau was at its peak a decade ago, even low-end players typically bet over $1,500 per hour at the tables, with higher-end, mass-market players losing an average of $2,500 a day," the Journal reported, citing industry experts.
Citi's latest Macau table survey reveals that wagers by premium mass players increased by 5% this month.
Slow but Steady Comeback of VIPs
Although Las Vegas has no shortage of high rollers, Macau is poised to attract more whales this year. The Citi survey suggests that VIPs, or players whose average wagers are over $13K per hand, have started showing up in Macau in larger numbers.
"The data we gathered before COVID found similar month-on-month declines in wager per player in 2018 and 2019," the bank commented. "We believe this seasonal trend is attributable to the fact that the tourist-heavy month of August is also the time when more casual, less enthusiastic players arrive."
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Source: www.casino.org
