As the last satellite casino "Jinbi Hui Cai Entertainment" closed its doors on December 30, the Macau gambling market has welcomed a new round of reshuffling. In order to compete for the customer base of the former satellite casinos, several integrated resorts have recently opened new gambling areas and lowered the minimum betting threshold for mass baccarat, making the market competition suddenly intense.
Mass Baccarat Threshold Lowered, New Areas as Low as 300 Hong Kong Dollars
According to the latest monthly table survey by Citibank, the average minimum bet for Macau mass baccarat in December was about 2058 Hong Kong dollars. Guess what? Although this number has increased by 4% compared to the same period last year, it has dropped by about 3% from November. Analysts point out that this month-on-month decline is the result of operators adopting more aggressive strategies to capture the customer base released after the closure of satellite casinos.
To attract these price-sensitive players, properties including the Galaxy Hotel, City of Dreams, Wynn Peninsula, and Grand Lisboa have been launching new gambling areas with lower betting thresholds since October. Citibank's report shows that some gambling tables have even lowered the minimum bet to 300 Hong Kong dollars, which is quite "people-friendly" compared to the level at the beginning of the year. These new areas are quite popular, and analysts found them "quite crowded" during visits, and expect that Sands Macau on the Macau Peninsula, the stronghold of satellite casinos, will soon join the battle for customers. For more in-depth analysis and data on the Macau and global gambling markets, keep an eye on updates from PASA official website.
The High-End Market Remains Strong, with Both Player Numbers and Betting Amounts Rising
While the betting threshold in the mass market is lowering, the performance of the premium mass market remains strong, presenting a different scene. December's survey data showed that the total betting amount in the observed premium mass market increased by 18% year-on-year, reaching 12.6 million Hong Kong dollars. At the same time, the number of premium mass players also increased by 5%, reaching 534 people.
What's more noteworthy is that the spending strength of the players is also increasing. The average bet per premium mass player increased by 13% year-on-year, reaching 23,654 Hong Kong dollars. This data indicates that both the number of participants and per capita consumption in the high-end segment are improving. Competition also extends to the top-tier high rollers ("whales", referring to players who bet 100,000 Hong Kong dollars or more at a time). In December, the observed number of "whales" increased from 21 people in the same period last year to 28 people. Sands China returned to the top spot in December with a 29% share, analysts believe this is closely related to the traffic driven by its hosting concerts and other entertainment activities.
Gambling Tax Revenue Continues to Grow, Approaching the Annual Budget Target
The market's activity is also directly reflected in the government's coffers. Data from the Macau Finance Bureau shows that gambling tax revenue reached 9.27 billion Macau patacas in November, a year-on-year increase of 15.9%. This tax revenue corresponds to the total gambling revenue of 24.09 billion Macau patacas in October, which is the strongest single-month performance since January 2020.
Overall, in the first 11 months of this year, Macau's cumulative gambling tax revenue has reached 86.7 billion Macau patacas, completing about 98% of the annual budget target of 93.1 billion Macau patacas. It should be noted that gambling tax revenue accounted for 82.9% of the government's total revenue during the same period, absolutely a pillar of Macau's finances. Under the current gambling license system, the actual tax rate on casino gross revenue is 40%, and the current market performance undoubtedly provides solid support for government finances.
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This article is from "PASA-Global iGaming Leader" gambling news channel:https://t.me/pasa_news
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