Mass-market Gambling Flourishing in Macau

    Macau at night

    Asian gambling hub Macau has issued their reports for the third quarter, revealing some surprising results. Although it is primarily known for its high stakes, VIP games, the gaming center has revealed that VIP games contributed only 44% to the overall gross revenue, while the mass-market has shown a significant year on year growth of 3.9%.


    Macau at night

    Slots Offer Increases Mass-market Intakes

    The biggest reason for this growth can be found in opening two large casinos in Macau: Wynn Palace Cotai, featuring more than 1,100 various slots, and The Parisian Macao, owned and operated by Las Vegas Sands Corporation, featuring 2,500 slot machines.

    These new gambling venues have created a significant shift in balance in Macau. According to Union Gaming Securities Asia, 2016 Q3 figures represent the lowest-ever mix when the VIP and mass-market gambling figures are compared. High roller baccarat intakes, a game hugely popular in Asian casinos, represent 52% of total gaming revenues.

    Table Games Experiencing Growth as Well

    Apart from slots, the Union also expressed their opinion that mass-market interest for table games has experienced an increase as well. However, they emphasized the numbers published by the Gaming Inspection And Coordination Bureau don’t represent the actual state of affairs because of the casinos’ practice of table reclassification.

    The mass-market income has probably experienced an 11% growth, but this is hard to determine because casinos often move tables to high roller areas. Often, this is not motivated by a type of games or even stakes played, but rather due to the fact, smoking is allowed in the VIP areas. Hence, the balance is disturbed in favor of the VIP games, whereas this doesn’t paint the real picture.

    Macau Gaming on the Rise

    Although it experienced some difficulties earlier, Macau gambling market seems to be alive and well once again. With the mass-market on the rise, Macau is now benefiting from a whole new influx of funds thanks to casino establishments aimed at „regular“ gamblers.

    However, it is also expected that the VIP segment will be experiencing a new growth in the near future. Although there are certain reasons to make experts a bit more cautious about the high roller games predictions, they are overall positive that this market will be back on the way up soon.

    As the main gambling hub of the eastern hemisphere, Macau probably doesn’t have too much reason to be concerned about its financial well-being. Disregarding a few upsets here or there, the overall market is nearly certain to keep growing and flourishing.

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