After the Covid period subsided, China’s zero policy has since seriously affected the recovery of the Macau gambling market. As a result, the financial status of the market has started to dwindle massively, and the eventual fate of the entire market is plummeting and not looking promising in any way. Thus, many casino suppliers have recently started migrating to greener pastures in the likes of Singapore and the Philippines.
Macau used to be one of the world’s best gambling destinations, but since Covid, things have not been going well. The pandemic’s aftermath remains devastating and detrimental to the growth of the gambling industry. It was predicted in August of this year that there is bound to be up to a 47.5% decline, year after year. One of the reasons hampering the betterment of Macau’s status is China’s Covid zero policy.
Unlike Macau, Singapore and the Philippines have seen their gambling industries proliferate. They were noted to have rapidly recovered from the Covid mishaps while even going on to the extent of reaching levels beyond those attained pre-pandemic. So, it is unsurprising that many casino suppliers are migrating to greener pastures.
With the continual migration of these companies away from Macau, it seems like their woes will only worsen. The problem is that the big guns are moving out, thus plummeting Macau’s recovery hope into the mud. One of the world’s leading gambling solution companies, Light & Wonder Light & Wonder Inc., is among the many who would be following the bag, far away from the cosmos of Macau. They would be opening a new head office in the Philippines as soon as possible.
This plunging into the depths of desolation would only further affect Macau casinos as they would no longer be interested in advancing or implementing new changes in their projects. One of the worst happenings yet would be the 90% drop in revenue of a casino provider in Macau. All of these companies would eventually be less and less interested in Macau and more in relocation.
No less than four crucial casino device providers have planned to shift the base away from Macau to more profitable markets. Considering the business aspect in the industry, this is a logical step to take as revenue percentages in Macau have slumped tremendously to a measly 9%. However, the Singaporean, South Korean, and Philippines markets have seen over 70% recovery from the adversities of Covid.
The gambling revenue in Macau used to be six times that of Las Vegas, but now, there has been a massive dip in revenue to one-third of what it used to be. The Covid lockdown was a significant cause as Covid struck punters from all around the world with the fear of having to be stuck in Macau for unknown periods.
Device and software suppliers keep shifting base, casino operators keep losing money, and this deterioration is quite concerning to many. Even tourists are beginning to look elsewhere. Thus, the downfall may just be starting, and the worst is most likely yet to arrive.
