October Best Post-Covid Month for Macau Casinos
Last month, Macau casinos raked in gross gaming revenue (GGR) of MOP 20.8 billion ($2.6 billion), up 6.6 percent over the same month in 2023 and 20 percent over September. GGR was also 3 percent higher than the previous post-pandemic high of MOP$20.2 billion recorded in May, according to the Gaming Inspection and Coordination Bureau (DICJ).
The month started strong, as mainland Chinese celebrated the national Golden Week holiday in Macau. The city welcomed more than 993,000 visitors from Oct. 1-7, up 1.9 percent over 2019, before Covid shutdowns began. Macau did not fully open its borders until January 2023.
According to the Macau Government Tourism Office (MGTO), city hotels saw record occupancy, peaking at 98.5 percent on Oct. 3-4.
Arrivals from mainland China, Macau’s top feeder market, were up almost 55 percent year-on-year. Tourism peaked on Oct. 3, breaking the all-time single-day record with more than 174,000 visitors.
More Pushback for Thailand Casino Plan
A draft of Thailand’s Entertainment Complex Act, which would establish a legal casino industry in the country, is expected to reach the cabinet this year and go to parliament for debate in 2025.
The legislation would introduce five or more integrated resorts (IRs) with gaming in locations such as Chiang Mai, Phuket, the Eastern Economic Corridor and Bangkok. It’s touted as a way to boost tourism, increase international investment, add new jobs and capture income that now goes to border casinos or underground operations.
But opponents say legal casinos could open the door to gambling addiction and financial crimes. A January report from the U.N. Office on Drugs and Crime said casinos and other “high-cash-volume businesses” have long served as portals for underground banking and money laundering in Southeast Asia.
James Warren, lecturer at Mahidol University International College in Phuttamonthon, told Voice of America that some oppose gambling because it “contravenes Buddhist precepts.” Others fear that casinos will increase problem gambling, debt and related crimes. However, Warren said, the outcome “largely depends on how well regulated the casinos are.”
Though lawmakers hope to open the country’s first IRs in 2029, before MGM Osaka breaks ground as Japan’s first casino, according to the Bangkok Post, the government is in no hurry.
“The details must be debated by all stakeholders,” said Deputy Finance Minister Julapun Amornvivat. “The final version may not be the same as the original, and the (assessing) committee will come from diverse backgrounds.”
An independent agency will conduct a feasibility study, and a policy board chaired by the prime minister will set the rules governing gaming complexes.
Melco Buoyant on Improved Macau Performance
In Macau, casino concessionaire Melco Resorts beat third-quarter estimates and kicked off a strong fourth quarter, thanks to Golden Week visitation, which drew more than 930,000 people to the gaming hub.
According to Macau Business, Melco’s City of Dreams recorded three of its best mass-table drop days of all time during the national holiday, Oct. 1-7. Studio City enjoyed four of its best days for mass table drop during the same period.
Melco also operates City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus. The operator is currently developing a new casino resort in Sri Lanka. Phase 1 debuted in October. Phase 2 will add a casino and more non-gaming attractions.
Company-wide, Melco posted total operating revenues of $1.18 billion, up 16 percent from $1.02 billion in Q3 2023. Operating income totaled $138.6 million, compared to $94.7 million last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) of $322.5 million compared with $280.6 million in 2023. Net income was $27.3 million, reversing a net loss of $16.3 million last year.
Will Japan Award More IR Licenses?
In 2018, when Japan approved integrated resort (IR) legislation, analysts predicted the new gaming industry would rival Macau for revenues. But Covid threw a monkey wrench into the process. Since then, Japan has approved just one license, to MGM Osaka. Will the market ever regain its momentum?
Steve Gallaway of Global Market Advisors says the slow pace of licensing in Japan caused “investor fatigue” among operators who once were keen on the jurisdiction. But if MGM succeeds, interest in IRs—among operators, the government and the Japanese people—could reignite.
“MGM demonstrated strong staying power and will ultimately be successful,” said Gallaway. “I suspect as MGM continues to move forward, demonstrates its ability to act as a strong member of the community, provides good-paying jobs and is sensitive to the needs and wants of the local population, people’s fears of IRs will dissipate and there will be a push for additional IR development.”
That outcome is likely years in the future. MGM Osaka, a $10 billion development on Yumeshima Island in Osaka Bay, is not expected to open until 2030.
Andrew MacDonald Exits Resorts World Sentosa
Andrew MacDonald has left his post at Genting Singapore’s Resorts World Sentosa (RWS), in a resignation that was effective Nov. 1. MacDonald assumed the post in February, and has been with Genting Singapore for about two years.
MacDonald previously served as chief casino officer and senior vice president at RWS’ sole rival in the market, Marina Bay Sands. In August, MBS banned him from entering his former workplace, claiming he had attempted to poach VIP clients, according to the Straits Times.
RWS reported that he left for personal reasons.
