Macau casino operators shift focus to non-gaming, analysts say

Macau aims to emulate Las Vegas and Singapore.
Macau aims to emulate Las Vegas and Singapore.

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.

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