Macau has been the big fish in gambling for years, putting up record numbers while rival Las Vegas seems to have plateaued lately. This isn’t the first time all eyes have been on Macau, but things have certainly gotten more interesting for them with the recent gambling craze. With Macau making almost ten times as much as Las Vegas, they may see their own numbers start to dwindle as competition gets fiercer. Macau is as close as a monopoly as you can get on the Asian gaming market, so what exactly is going on?
It starts and ends with some of the hard restrictions set by the local government. The economy is still not at its peak, so that may play a small part as well. So with this small crack in the armor of the mighty Macau, there is an opening for gaming companies in the Philippines to capitalize and come in strong with a bid. There are a total of 4 integrated resorts in the process of being completed in the capital of Manila. These resorts function as ‘mini’ Las Vegas spots for gamblers and is a pretty interesting idea. There is entertainment, food, hotels, casinos and shopping and more. It’s a one stop shop for making and spending a small fortune.
The other big player in the Asian gambling market is Singapore, with respectable numbers including big name operators such as M88 Indonesia and Mansion88. But even they are in danger of losing market share when you compile together all of the places gamblers can get their fix in Asia. Local and legal casinos are in Australia, Saipan and Cambodia. Japan, South Korea and Vietnam are interesting challengers, especially since there are rumors floating around that they may lift the ban on gambling for locals. This still won’t help the Asian gambling market recover the rich Asian gamblers, but it does serve as an interesting way to get everyone else below that level.
With the goal set as a long-term plan rather than short term, not worrying about the high rollers makes perfect sense as a business plan. Asian gambling markets are expected to spend over 30 billion in the next few years in order to boost revenue and build, so don’t expect this to just go away overnight. As long as casinos can rely on repeat customers, the high rollers won’t make a big difference. And once business starts improving towards favorable numbers, the marketing department can start focusing on getting the high rollers back in the casino. This is a big bet for the casinos in Asia, and chances are they will pay off quite well.