Macau Casinos Post Modest Increase for March
Macau casinos recorded a 0.8 percent increase in gross gaming revenue (GGR) last month, to MOP19.6 billion (US$2.45 billion). The subdued returns were not “materially impacted” by the March arrests of alleged illegal money-changers, said Seaport Research analyst Vitaly Umansky. But the crackdown could briefly discourage visitation to the gaming hub.
Illegal money-changers help gamblers sidestep government controls on cross-border transactions. Last October, the Macau Legislative Assembly criminalized the unlicensed exchanges, which prey on casino customers. Authorities said the operations lead to “fights, fraud, thefts, illegal immigration and other crimes.”
The latest sting netted 42 alleged money-changers, including ringleaders, according to Macau Business. They allegedly facilitated MOP813.7 million in cross-border transfers.
April GGR could be “slightly affected by near-term potential headwinds” from the crackdown, Umansky wrote. “Customers may stay away from pawnshops and others may forego a near-term trip to Macau.” But long term, the effect should be negligible. Seaport sees a 10.9 percent lift in the second half, for a 6.5 percent year-on-year increase in GGR for 2025.
“Growth should be driven by increase in marketing efforts by operators and consumer trends,” Umansky wrote. China stimulus and policy measures should help build consumer confidence.
Was Thailand Casino Poll Rigged?
On March 27, Thailand cabinet members passed the country’s Entertainment Complex Bill, which would legalize casino resorts in the country.
Recent polls reported that many Thai residents oppose legal casinos, fearing they will lead to gambling addiction and increased crime. But during a recent public comment period, the government reported, 80 percent of more than 71,000 respondents said they support the proposal.
Now former election commissioner Somchai Srisutthiyakorn suggests the survey, conducted by the Fiscal Policy Office, may have been flawed. According to the Bangkok Post, the results showed uncannily similar levels of support for every aspect of the legislation.
Statistically, it implied that 57,500 out of 71,303 respondents gave the same answers. “Even from Mars, the result looks improbable,” Somchai said. “Yet, the cabinet believes it.”
People’s Party MP Parit Wacharasindhu warns that the government will try speed to approvals before the current parliamentary session ends on April 10. “Let’s see what method will be used here to push the casino bill ahead of the others,” Parit said.
He also said lawmakers need to carry out a feasibility study. Deputy Finance Minister Julapun Amornvivat has said that review would take place after the bill passes in parliament.
“Why after and not before?” Parit demanded.
Macau Government to Assess Operators’ Non-Gaming Investments
On March 28, Macau Secretary for Economy and Finance Tai Kin Ip announced that the government will grade casino operators on their non-gaming investments.
The six operators—Sands China, Wynn Macau, Galaxy Entertainment, MGM China, Melco Resorts, and SJM Holdings—signed new 10-year license agreements in December 2022. The terms require them to support economic diversification by adding theme parks, sporting arenas, cultural facilities and other non-gaming attractions.
The government wants non-gaming revenue to contribute 60 percent of gross domestic product by 2028, with gaming responsible for 40 percent. In 2019, before the Covid-19 pandemic, gaming accounted for more than 50 percent of GDP, and non-gaming kicked in less than a tenth.
Debts Imperil Satellite Casino Operator
Last year, Macau satellite casino operator Macau Legend Development (MLD) accumulated losses of HK$667.23 million (US$86 million), up from just HK$4.9 million in 2023.
In a March 28 filing, the company said failure to comply with “certain loan covenants” has rendered loans of HK$2 billion “immediately repayable.” But those loans “may not be repayable.” The debt burden casts “significant doubt on the group’s ability to continue as a going concern,” MLD acknowledged.
MLD operates Macau Fisherman’s Wharf, with a casino that operates under the SJM Holdings concession. In recent years, the firm sold its Savan Legend Casino in Laos. And in 2015, it signed a deal to build a HK$2 billion entertainment complex in the West African nation of Cabo Verde.
But that development “did not proceed beyond some empty, rudimentary structures,” Macao News reports. Last year Cabo Verde officials showed MLD the door, accusing it of “flagrantly and repeatedly” violating its obligations related to a planned complex.
Now the firm is at the mercy of lenders. It is “actively seeking support from the banks for the restructuring of outstanding installments due in 2025.”
Resorts World Sentosa to Debut New ‘Lifestyle’ Complex
Resorts World Sentosa (RWS), one of two integrated resorts (IRs) in Singapore, has announced it will open “a new lifestyle destination” called Weave in the second half of this year.
Once known as the Forum, the new five-acre development will include “Asia-exclusive flagship stores and novel experiences.”
RWS Chief Executive Tan Hee Teck said Weave “marks a significant milestone in our RWS 2.0 transformation. … More than a retail space, Weave is a dynamic social hub connecting guests across the resort and attractions to create an immersive journey from day to night.”
In 2019, RWS and Marina Bay Sands, its sole competitor in the market, agreed to invest a combined S$9 billion (US$6.7 billion) in new tourism and MICE facilities, in exchange for an extension of their duopoly through 2030. In November, Singapore gaming regulators renewed the property’s casino license for two years, instead of the typical three, due to “unsatisfactory” results following the pandemic.
