Inside Asian Gaming

IAG JUN 2020年6月 亞博匯 80 COLUMNISTS there was a narrow window (late January and early February in Asia and first two weeks of March in the US) with weekly reporting statistics that provides insight into gaming behavior immediately preceding industry closure. SUPPLY CONSIDERATIONS Social distancing and seating capacity constraints: In advance of full containment of COVID-19, casinos are likely to institute social distancing and seating density measures that will limit the number of gaming positions available. This would result in capacity constraints, especially in high-volume casino markets. Thus, we believe spacing and density control on gaming floors will result in capacity constraints on top of the demand response. However, we note that the impact of new spacing policies is not ubiquitous. In a casino where historically only one out of every three slot machines was occupied at peak, there would be less sensitivity to an effective supply cap than a casino fully occupied during peak periods. New development and maintenance CapEx: We believe the potential impact of tight credit markets would constrain greenfield development or planned property expansions in Asian gaming markets. Further, the possible impact of lapsed facility upkeep may result in players shifting their property of preference, though not reducing their baseline level of play. Potential closures: We recognize that COVID-19 may result in a limited number of permanent casino closures. This could result from insufficient liquidity in poor locations where reopening under current or new ownership does not pencil. However, this should have a somewhat neutral effect on the outlook results, with the assumption that reduced supply will generally occur in more markets where lost revenue would likely be absorbed in the remaining facilities. How much discretionary spending will be possible as Asia emerges from the COVID-19 pandemic? 隨著亞洲逐漸從新冠疫情中走出來，可自由支配的開支還將所剩幾何？