New casinos gives Macau gambling industry hope
25 June 2015
There has been substantial speculations with regards to the increasing number of new casinos scheduled to open in Macau in 2015 -taking into consideration the severe market stasis and the Beijing government’s new approach on anti-corruption crackdown throughout all gaming and gambling facilities.
Whilst the Macau gambling industry has seen an all-time revenue decline in the past 18 months, there has been some improvement with the new Galaxy Phase II which opened for operation in May 2015. The new casino has proven to be successful with gamblers in Macau. The Galaxy casino has announced a market share increase of 6.4% and an overall 25% market share, showing revenue rises amidst the current state of Macau and other operators.
While the Galaxy II Casino has seen unexpected success since its inception, the chairman for Galaxy II casino, Lui Che Woo is not eagerly excited with the current standings and have said in a press release recently, that the overall performance was satisfactory and not nearly as good as what the company had initially projected. The next couple of months should reveal if market conditions will improve for Galaxy Phase II or if the casino will continue to thrive in the midst of market stagnation. Market research indicators have shown that the gaming industry in Macau will continue to decrease by a staggering 34.8% in June 2015.
In 2014, the Chinese authorities began crack down operations on corruption in Macau casinos, focusing on high end baccarat players. The beginning of 2015 saw Macau imposing a full ban on smoking inside all public areas, including casinos. Analysts predicted that the partial casino smoking ban contributed to the revenue decline. Currently, smoking is banned on mass market floors, but permitted in VIP areas. The full ban could add to the existing high revenue losses.
It is evident that Macau policy makers want to create a healthy and conducive environment for travellers, visitors and residents of Macau and to strike a balance between tourism and the quality of life for Macau citizens. Part of the restructuring of the Macau gaming industry is for government to look at non-gaming attractions, job creations and the positive promotion of Macau residents within each gaming related company and maintaining growth and stability