JANUARY YIELDS RECORD LOW SHARES OF CASINO GAMING REVENUE FOR MACAU VIPs

Published on February 26, 2014 in Industry News

It seems that more would-be high rollers are keeping their cash, as January saw record low revenues in Macau casinos. While normally, Macau high rollers account for an average of 65 percent to 70 percent of gaming revenues, this past January saw a record low, with VIP players accounting for 60.6 percent of revenue at the high roller casinos based in Macau.

Macau high rollers were responsible for about two-thirds of revenue in 2013, which was a record breaking year. Notably, though, the VIP players accounted for just one-third of earnings.

According to the Telsey Advisory Group, last month's decline is not going to be isolated. It's expected that Macau high rollers will turn away from high stakes gaming due to several casinos' decision to turn VIP gaming tables into so-called mass market tables, which are said to be more profitable.

In fact, the year saw a “slow” start, with just 7 percent growth to approximately $3.6 billion. Last year, the Macau high roller casinos saw a boost of over 18 percent.

According to Tam Pak Yuen, Macau Secretary for Economy and Finance, total high stakes gaming revenue is expected to grow in the low double digits, with the mass market sector the source of more growth than the sluggish VIP high roller market segment.

The Secretary for Economy and Finance also indicated that the mass market casino players should also bring a significant boost to other industries, such as tourism and shopping.

Despite the lower-than-average growth, Macau is still thriving. In fact, it's believed that Macau may be serving as much as 2.1 percent of the mainland China market and that figure is projected to grow in the coming months.