Special Report – New gaming concessions The first year (and beyond)

By
João Paulo Meneses

Macau Business | January 2024 | Special Report | New gaming concessions – The first year (and beyond)

“For the times they are a-changin’”

This is the first year of the decade-long new gaming concession contracts, with the incumbent six gaming companies operating but under new terms. The first year of the ‘new era’ of Macau’s core industry also coincided with the city’s post-pandemic reopening. One year is not long, many will say, but enough to realize that several things started to change, if compared with the previous contracts (of 20 years).

 One of them is the interventionist role of the Government, which now is more proactive in supervising  what operators do and put forward demands for urban revitalisation—never seen before. Another new development is the pressure to attract tourists outside of Greater China—the Government wants two million in Macau throughout this year. An aim that comes in the face of a shortage of long-haul connections at the local airport.

Another novelty is the early end of junkets, which is not the same as the end of high rollers. Last note: tourists from Mainland continue to arrive in large numbers, but here too there seem to be changes—there are more young people than before, experts say. And this will lead to the need for more adaptations.

Co-ordinated by João Paulo Meneses / [email protected]

Is 10 years a short time?

It may not suffice to create an entirely new economic model that is significantly less dependent on gaming, but it will be enough for everyone to make a lot of money

First step: revitalisation of historic areas

The government has placed all its chips on the revitalisation of “community areas,” which are now the responsibility of the six operators.

Now it’s time to revamp

Except for the special case of Galaxy, which is still expanding, operators are now focusing on the renovation of certain spaces, beginning with some of the rooms that were exclusively used by the junkets

How to attract international visitation?

While the emphasis on drawing foreign tourists is a top priority, industry observers highlight that Macau’s market will continue to be oriented towards Greater China

Mass market, the new king

… but that doesn’t mean VIP gaming is dead or has become irrelevant

Foreigner-only gaming zones, the novelty

More than a novelty, these areas exclusive to foreigners are original. It remains to be seen what the effective impact is

Junkets: On the verge of extinction, or not

The role of junkets is at this point little more than residual. There are even those who predict that they will eventually disappear, unless they reinvent themselves

New Gaming Law, a Beijing tailored suit

With the new law, national security takes centre stage

The young Chinese tourist has arrived

Millennials and Generation Z patrons may be less interested in gambling, but downplaying their role would be a mistake

Government: Hands-on

Previously, the government was seen as relatively passive, but now it has become proactive. With the new Gaming Law and additional strings attached to the concession contracts, the authority has gained “increased powers to intervene.”