Number of VIP Gamblers in Macau Continues to Drop

Macau has long been the biggest gambling destination in the world. Unfortunately, gambling revenue here has been on a steady decline over the past few years. The number of VIP gamblers in Macau is dropping fast and there is a concern that this market may soon be overtaken by other countries in the area.

That’s obviously a big statement to make. Macau remains a major gaming hub in Asia and it wouldn’t be a surprise to see revenue figures here back to normal by the end of the year. Today, we’re going to look at why this city has struggled to generate earnings and what to expect here in the future.

Macau’s Revenue Dip, Explained

There are many factors contributing to the decline in Macau’s earnings. The majority of analysts feel it’s due to the slowing economic development in Mainland China. In 2018, this country’s economy grew at its lowest rate since 1990 by just 6.6%.

The United States and China have been locked in a trade battle for the past couple of years. The impact that this is happening on the economy is evident. As a result of this economic downturn, fewer people are choosing to gamble here.

This, in turn, is affecting Macau’s revenue. For decades, Macau casinos have relied on VIP gamblers from Mainland China to boost their earnings. As China’s economy slows, more of these gamblers are choosing to simply hold onto their money.

There’s also the issue of outside competition. A number of nearby countries are seeing their casino earnings break records. A recent report even indicates that the Philippines’ casino industry is now competing with Macau and Las Vegas. Even Japan, which has been hugely anti-gambling over the years, has legalized casino gambling in a number of different cities.

VIP Gamblers in Macau Are Becoming Rarer

Officials in Macau are still working hard to bring in VIP gamblers to their casinos. Unfortunately, a staggering amount of these players are choosing to play in other markets including the aforementioned Philippines. Junket operators are having an extremely difficult time attracting these players to Macau.

Junkets, in case you’re unaware, are businesses that attract high rollers to casinos. They offer perks such as free accommodations in exchange for a guarantee of gambling at a specific establishment. In 2018, the number of junket operators in Macau decreased by more than 8%. Many of these junkets are moving into other countries to stay afloat.

There’s never been more competition in Asia’s gambling industry. Some of the top gaming experts feel this is the biggest threat to Macau right now. Grant Govertsen, an analyst for Union Gaming Group, recently commented on the effect that casino competition is having on Macau.

“The threat is real. Clearly, there is a growing realization that Macau VIP play is bleeding to regional markets,” he said.

Govertsen claims that, oftentimes, VIP players will test out new gaming markets before ultimately returning to Macau. That’s certainly hopeful thinking.

It’s a perfect storm contributing to Macau’s record-low revenue earnings. China’s economy is slowing down, and nearby countries are beginning to embrace their casino markets. What should we expect here over the next several months?

Things May Get Worse Before They Get Better

Despite the dubious state of its economy, many of the top gaming companies in the world are still investing in Macau. According to the Las Vegas Review-Journal, Las Vegas Sands is spending more than $2 billion on new Macau casino establishments over the next two years. It’s a promising sign for this city.

It’s very possible that Macau’s revenue will continue to decrease over the next several months. Japan is still working to open its first casinos. Once these casino establishments are launched, competition in the area will increase even more.

The number of VIP gamblers in Macau may also continue to decrease. Ultimately, Macau’s casino industry will continue to flourish. Things may look bad right now, but this city still maintains the best casinos in the area. Don’t expect this market to stay down forever.

The fact that major companies continue to invest in Macau proves this. If by some chance we see major casinos here shut down their operations, officials may actually have something to worry about.

How long do you think Macau’s revenue earnings will stay down? Will new investments help to bring back VIP gamblers in Macau? Let us know in the comment section below!

Share
Kevin Oldroyd

A longtime sports and gambling enthusiast, Kevin looks to present up-to-date and reliable information for readers. If he’s not writing, he’s probably watching MMA or playing blackjack.

Recent Posts

Conor McGregor to Face Dustin Poirier in Charity Match in December

Conor McGregor to face Dustin Poirier in charity sparring match on December 12 McGregor defeated Poirier by first-round TKO at…

September 30, 2020

Tennessee Titans Announce Huge Deal With BetMGM

In a first of its kind deal for the Tennessee Titans, the NFL team has announced that they have entered…

September 30, 2020

Caesars Agrees To Purchase William Hill For $3.7 Billion

Caesars to purchase William Hill for $3.7 billion Caesars will control William Hill's US assets while looking to sell international…

September 30, 2020

Jon Jones is Betting Favorite in Potential Bout Versus Israel Adesanya

Israel Adesanya is coming off a spectacular knockout win over challenger Paulo Costa last weekend at UFC 253. Jon Jones…

September 29, 2020

Colorado’s Sports Betting Revenue Increased Again in August

Colorado’s sports betting industry is one of the newest in the country. Fortunately, it’s already proving to be hugely profitable…

September 29, 2020

Titans, Vikings Shut Down Team Facilities After 8 Test Positive for COVID-19

Titans, Vikings shut down team facilities after eight members of Titans test positive for COVID-19 Vikings have returned no positive…

September 29, 2020