Macau Casinos Face Fierce Battle for Market Share
With the Wynn Palace open and The Parisian Macao opening in the near future it is expected that there will be a fierce battle for market share among the six biggest casino operators on the peninsula.
The Chinese government’s clampdown on excess spending hit Macau’s top casinos hard but the two new casinos are offering a wider tourist experience than mass market or VIP gambling and as such are confident that they can succeed.
The opening of two new resorts is likely to cause concern for Stanley Ho Hung-sun and Lui Che-woo, both of which own properties on Macau that could see a fall in customers as a result of the new resorts.
All of Macau’s casinos have suffered over the past few years with the Gross Gaming Revenue falling for 26 consecutive months. However, there have recently been signs of a turnaround and many are hoping that the new resorts will help to solidify this change.
However, all the casinos are now going to be locked in a battle for market share and some casinos will be fighting to survive. For instance SJM, which is owned by the family of Stanley Ho, posted disappointing first-half results as it continued to struggle with plunging gaming revenue in its VIP rooms while MGM China, which his co-chaired by Ho’s daughter Pansy Ho, enjoyed excellent performance in the same period.
The real question is whether the new resorts bring in new crowds to explore the area and see what is on offer or whether they will simply result in a change of location for the players that are already regulars.