{"id":282471,"date":"2023-07-25T12:38:46","date_gmt":"2023-07-25T17:38:46","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=282471"},"modified":"2023-07-25T13:14:21","modified_gmt":"2023-07-25T18:14:21","slug":"macau-looking-to-copy-las-vegas-singapore-revenue-model","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/","title":{"rendered":"Macau Searching for Las Vegas-esque Revenue Mix"},"content":{"rendered":"

Of the world\u2019s major casino markets, Macau is the most dependent on gaming revenue. Authorities there want to change that.<\/p>\n

\"Macau
Visitors in downtown Macau pose for photographs in front of Grand Lisboa during Chinese New Year in February. Analysts believe the enclave is seeking revenue inspiration from Las Vegas and Singapore. (Image: Reuters<\/em>)<\/figcaption><\/figure>\n

The desire of Chinese and Macanese officials to diversify the special administrative region\u2019s (SAR) economy and make it less gaming-dependent is well-documented. It is also reflected in the latest batch of gaming laws. Analysts believe officials are seeking inspiration from rival markets, namely Las Vegas and Singapore.<\/p>\n

We expect Macau\u2019s gaming operators to transition to the Las Vegas Strip\/Singapore model with a lower gaming revenue contribution at approximately 40 percent\/68 percent, respectively,\u201d<\/strong> noted Macquarie analysts Chad Beynon and Linda Huang in a recent report.<\/p><\/blockquote>\n

It\u2019s estimated that wagering activities will account for 83% of revenue generated at Macau integrated resorts this year.<\/p>\n

Macau Nongaming Efforts on the Books<\/h2>\n

It\u2019s estimated that over the next decade, Macau concessionaires will be required to spend approximately $15 billion<\/a> combined on nongaming projects. The SAR\u2019s six license holders are Galaxy Entertainment, Melco Resorts & Entertainment, MGM China, Sands China, SJM Holdings, and Wynn Macau.<\/p>\n

\n

The Macquarie analysts estimate that 92% of those expenditures will be allocated to nongaming efforts. As for the SAR\u2019s Las Vegas\/Singapore ambitions, it\u2019s not a far-flung concept, because Las Vegas Sands, which runs five Macau casino resorts, operates Marina Bay Sands in Singapore<\/a> while MGM Resorts International and Wynn Resorts, parent companies of the aforementioned Macau subsidiaries, are fixtures on the Las Vegas Strip.<\/p>\n<\/div>\n

The Las Vegas revenue model is an enviable one. From 1984 through 2022, gaming win declined from 59% to 38% of Sin City operators\u2019 top line, according to a report published earlier this year by the UNLV Center for Gaming Research. Still, the US casino center flourished over that period, as room revenue surged fivefold.<\/p>\n

Last year, Strip operators generated $2.89 billion in food-related revenue — the second-best year on record — while beverage sales of $1.46 billion represented an all-time high, noted UNLV. In 2022, rooms, food, beverage, and entertainment combined for almost 63% of Strip revenue, a template Macau would like to follow.<\/p>\n

Macau Transition Will Take Time<\/h2>\n

It\u2019s expected that over the coming decade, the bulk of the aforementioned spending will come by way of Sands China and Galaxy Entertainment, which are the two largest operators on the peninsula. Analysts say Sands China<\/a>, a unit of Las Vegas Sands, has a lengthy record of directing capital to nongaming projects.<\/p>\n

\n

However, it will take time — likely years — for Macau\u2019s dependence on casino gaming to decline, and for evidence of Las Vegas\/Singapore similarities to become more readily apparent. Still, the near-term outlook for the SAR is bright.<\/p>\n<\/div>\n

\u201cWe expect Macau\u2019s mass GGR to return to 2019 levels in fourth-quarter 2023, helped by the removal of transport, hotel room supply, and labor supply bottlenecks,\u201d added the Macquarie analysts. \u201cThe increase in hotel room supply and the removal of transport bottlenecks should help to attract more tourists.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Of the world\u2019s major casino markets, Macau is the most dependent on gaming revenue. Authorities there want to change that. The desire of Chinese and Macanese officials to diversify the special administrative region\u2019s (SAR) economy and make it less gaming-dependent is well-documented. It is also reflected in the latest batch of gaming laws. Analysts believe […]<\/p>\n","protected":false},"author":46,"featured_media":258211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,62,10],"tags":[81913,81897,81903],"acf":[],"yoast_head":"\nMacau Looking to Copy Las Vegas, Singapore Revenue Model<\/title>\n<meta name=\"description\" content=\"Macau wants a revenue model that looks more like Las Vegas and Singapore.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Macau Looking to Copy Las Vegas, Singapore Revenue Model\" \/>\n<meta property=\"og:description\" content=\"Macau wants a revenue model that looks more like Las Vegas and Singapore.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-25T17:38:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-07-25T18:14:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/MAHKDMSVW5IYJKVTZOME3X4S7Y.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/\",\"url\":\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/\",\"name\":\"Macau Looking to Copy Las Vegas, Singapore Revenue Model\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/MAHKDMSVW5IYJKVTZOME3X4S7Y.jpg\",\"datePublished\":\"2023-07-25T17:38:46+00:00\",\"dateModified\":\"2023-07-25T18:14:21+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Macau wants a revenue model that looks more like Las Vegas and Singapore.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/macau-looking-to-copy-las-vegas-singapore-revenue-model\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/MAHKDMSVW5IYJKVTZOME3X4S7Y.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/MAHKDMSVW5IYJKVTZOME3X4S7Y.jpg\",\"width\":1200,\"height\":800,\"caption\":\"Visitors in downtown Macau pose for photographs in front of Grand Lisboa during Chinese New Year in February. 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