Experts foresee Macau gambling to benefit from crackdowns in the Philippines and Singapore, amid shrinking revenues.
Macau.- Revenues are shrinking in Macau, but the gambling industry could benefit from external reasons. According to experts, the crackdown in the Philippines and in Singapore could boost Macanese figures.
Analysts expect the current situation to impact in Macau gambling figures, but they don’t know when it’ll happen.
Bernstein Research analyst Vitaly Umansky says there are signs that VIP activity is increasing. However, volumes seem to have risen by a “mid-single-digit” percentage in the first half of September.
“(VIPs) feel they are being looked at in Macau, which of course they are,” said a regional casino industry executive.
Gambling is the main driver of the Macanese economy, but it seems to be facing some hurdles. That’s why, earlier this month, Secretary for Economy and Finance in Macau Lionel Leong Vai Tac said September’s GGR “didn’t look satisfactory.”
He also said he expects exports of services will have seen a year-on-year contraction for the last three months.
He added that current fluctuations in the economy are linked to the “China-U.S. trade war”.
The Chinese region of Macau owes its economic growth mainly to the gambling industry. Specifically, according to Bernstein Research, VIP and premium players are the top factors that drive the local market.
The financial services firm explained that between 300-400k individual VIP and premium players make up for 70% of Macau’s GGR. The firm released a document titled “The rise of Chinese gaming: A brief history and glimpse into the future of Macau,” in which it highlights that segment.