Macau casino operators shift focus to non-gaming, analysts say
Macau’s gaming operators plan to invest 92 per cent of their combined capital expenditure in non-gaming over the next 10 years.
Macau.- Analysts from Macquarie Equity Research, Linda Huang and Chad Beynon, have reported on gaming operators’ shift to a transformative approach, comparable to the Las Vegas Strip and Singapore models. They aim to place a stronger focus on non-gaming activities and services, making Macau a more multifaceted tourist destination.
According to the report, Macau’s six casino operators collectively plan to allocate 92 per cent of their combined capital expenditure toward non-gaming ventures over the next decade. This move is largely driven by the Chinese and Macau governments’ vision to reshape Macau into a more diverse destination, reducing its reliance on gaming revenue.
The analysts say gaming revenue’s contribution to operators’ overall revenue is expected to fall from 83 per cent in 2023 to a range of 40 per cent to 68 per cent, echoing Las Vegas and Singapore. More revenue will come from non-gaming segments, including hotels, retail, entertainment, and MICE
See also: Macau casinos form working group to promote MICE tourism
Under new gaming concessions, the six Macau casino operators have collectively pledged to invest a minimum of MOP108.7bn (US$13.48bn) in non-gaming initiatives and explore overseas markets. They will be required to increase their non-gaming investment by around 20 per cent of their initial pledge if Macau’s annual gross gaming revenue reaches MOP180bn (US$22.45bn) by 2027.
