Inside Asian Gaming

MAY 2018 INSIDE ASIAN GAMING 19 There is one cloud looming large for Macau’s concessionaires – the impending expiration of their 20-year gaming licenses and the as yet unknown license renewal tender or re-licensing process set to ensue. COVER STORY M ACAU and Japan seemingly have very little in common – the former has had casino gaming for centuries while the latter seems to have taken that long to create its own much vaunted casino industry. But what they do have in common is that both jurisdictions are about to enter a period where they’ll be forced to make a myriad of monumental and long-lasting decisions in their respective licensing processes. IAG takes a closer look at where the pair currently stand. KING OF THE HILL: MACAU Almost two years after Macau’s so-called downturn reached its lowest ebb in June 2016, the city is booming again. Gross gaming revenue, having fallen to a six-year low (MOP$15.88 billion) that fateful month, has now enjoyed 22 consecutive months of year-on-year growth with March GGR reaching MOP$25.95 billion. For the first three months of 2018 combined, revenue grew 20.5% to MOP$76.51 billion – the best quarterly result since 3Q14. There is even remarkable parity between segments, with mass gaming revenue up 20.1% and VIP up 21.0% in the first quarter. Union Gaming analyst Grant Govertsen estimates that each contributed between US$4.4 billion and US$4.5 billion (MOP$35.6 billion to MOP$36.4 billion) for the period, “Good news on dual fronts” with VIP now sitting at a sustainable level and mass “more robust than many had given it credit for.” Macau’s outlook through 2018 and 2019 is undoubtedly sunny. Yet there is one cloud looming large for Macau’s concessionaires – the impending expiration of their 20-year