It is no secret that Macau has grown to become the world’s premier gambling destinations for all sorts of reasons and it was confirmed this month after the announcement of record breaking revenues for a single month. Spurred on by being the destination of choice for China’s middle class gamblers, the resort posted revenues of US$4.6 billion for October, a record for one month not only for Macau but for anywhere.
The results also mark something of a shift from tradition. The 35 casinos in Macau have almost exclusively derived their revenue from China’s wealthy elite, with them contributing almost all of the area’s revenue. However, various changes in China have made these wealthy VIPs less able to gamble small fortunes on a regular basis, and the market itself is actually declining. Fortunately, the slack is being picked up as the Chinese economy continues to grow and now Macau is proving to be a popular choice with the Chinese mass market. The middle class are not only visiting in greater numbers, but they are also staying longer and spending more than ever.
Casino companies have never been the types to miss an opportunity and all six of Macau’s casino operators have plans to expand and develop on the back of the latest results. Whereas they have mainly been concerned with luxury in order to attract the highest rollers, a shift in the market means that they are now going after bigger visitor numbers with perhaps smaller bankrolls on an individual basis. Known as the ‘premium mass’ market, it includes gamblers that spend anywhere from $1,000 to $100,000 on each visit. This sector is proving to be much more profitable on a per player basis and casinos are pulling out all of the stops to be one of the area’s leading choices.
The $4.6 billion in revenue was an increase of 31.7 per cent on October 2012 and 25.9 per cent on September 2013. In total, Macau has grossed over $37 billion so far this year.
One of the main problems facing casino operators in Macau is a shortage of accommodation. In looking to attract more players with smaller budgets, they do of course need to be able to offer them hotel rooms. Eight casino resorts are currently working on brand new hotel complexes although any real extension of Macau’s hotel capabilities is not expected to have a marked effect until the end of 2014 at the earliest. Even now, the majority of the hotels are fully booked until long past the end of the year and some gamblers have even taken to setting up impromptu campsites to overcome the lack of availability.
Coincidentally, we’ve addded Macau to our dedicated country page section here at Mr Gamez, so whether you’re in Macau and fancy some online action or want the experience without leaving your home, be sure to keep an eye on the site for all of the latest updates!