Casinos' providers are shifting their focus from Macau towards Singapore.
Rewritten Article:
Heads are turning as casino supplier companies bid Macau adieu, gravitating towards the resurging gambling market in Singapore and the Philippines.
Once known as the undisputed gambling capital of the world, Macau has been dethroned, and Las Vegas reigns supreme once more. The culprit? The Chinese government's rigid zero-COVID policy.
The policy, which has resulted in lockdowns across China, has significantly impacted the Macau casino industry. Attendances by tourists and locals alike have plummeted, leaving casino establishments gasping for breath. As demand wanes, suppliers are turning their backs on the once-thriving city.
Two companies, Light & Wonder Inc. and a yet-to-be-named Japanese company, have already made the move, seeking greener pastures in Singapore and the Philippines.
The Japanese company's spokesperson admitted to a staggering 90% drop in revenue, causing them to redirect their focus to these promising new markets.
For over a decade, Macau stood tall as the world's largest gambling destination. generated close to $36 billion annually from gambling and tourism before the pandemic. Now, the city's revenues have taken a nose dive, and Las Vegas is the reigning champ once more.
The casino industry in Macau is heavily dependent on revenue from mainland customers and Asian and worldwide tourists. But the zero-COVID policy and its subsequent lockdowns have dealt a decisive blow, forcing Macau to hand over the mantle to Las Vegas.
The shift isn't just a response to the pandemic, though. Casino suppliers are also capitalizing on the growing demand in Asian markets, especially in the Philippines. Companies are navigating trade challenges prompted by the US-China trade war and forging strategic partnerships, like Novomatic's alliance with Harvest Gaming, to expand their influence in Singapore, Malaysia, and Vietnam.
Moreover, Macau's government is working towards economic diversification, reducing its reliance on the gaming sector. This move encourages companies to explore other markets for stability and growth, aligning with the government's "1+4" diversification strategy.
In essence, casino supplier companies are abandoning Macau for a variety of strategic reasons, including market dynamics, trade challenges, lucrative partnerships, and government policies. The resurging gambling markets in Singapore and the Philippines present enticing opportunities, while Macau grapples with the aftermath of the zero-COVID policy.
- Despite Macau's historical dominance as the world's gambling capital, generating nearly $36 billion annually, some casino supplier companies are turning away from the once-thriving city due to the Chinese government's zero-COVID policy.
- In light of the Macau casino industry's struggles, companies are increasingly looking towards the resurging gambling markets in Singapore and the Philippines, where demand for casino technology is growing.
- The Japanese company, one among those abandoning Macau, has reported a drastic 90% drop in revenue, forcing it to shift its focus towards these Asian markets.
- The Chinese government's strict COVID-19 measures, resulting in lockdowns, have decimated the casino-and-gambling sector in Macau, compelling companies to seek stability and growth in other regions such as Singapore and the Philippines.
