Inside Asian Gaming

INSIDE ASIAN GAMING | November 2013 22 T he ban on low-cost package tours from mainland China to Macau that came into effect on 1st October coincided with a 31.7% year-on-year surge in Macau’s gross gaming revenue last month to MOP36.5 billion (US$4.6 billion). Although part of the exceptional growth in October was the result of an easy comp— with revenue up a mere 3.2% in the year- Gearing Up The inexorable growth of Macau’s mass market—and the premium mass in particular— is revving up industry profitability. If current trends continue, the mass looks set to deliver three-quarters of the city’s gaming profits by 2016 ago month—it seems likely that by keeping away some of the lower-spending crowds during the week-long holiday period around China National Day on 1st October, the ban cleared the way for premiummass players to significantly lift the average bet size in the city. Macau’s total gaming revenue rose 17% year on year in the third quarter of 2013 to MOP89.2 billion ($11.1 billion), with VIP revenue, which constituted 65% of the total, up 13% and mass revenue, accounting for 31% of the total, rising 37%. The remaining 4% was made up of slot revenue, which grew 13% in the quarter. Since the end of 2011, the growth of the high-margin mass market has comfortably outstripped that of the dominant but much IN FOCUS Macau VIP Gaming Revenue Macau Mass Gaming Revenue Source: DICJ, J.P. Morgan estimates Source: DICJ, J.P. Morgan estimates