Macao’s casinos have been praised for successfully transforming former VIP junket rooms into mass gaming venues in a report that was published by property firm CBRE and cited by multiple media outlets.
CBRE analysts Colin Mansfield and Connor Parks wrote that “operators have done a good job of repositioning old junket rooms into gaming parlours and selectively growing direct VIP business.”
Mass market gambling’s current dominance in the industry was highlighted in the report, with the researchers pointing out that it had reached 2019 numbers and accounted for approximately 90 percent of the city’s revenue from gambling. This is in sharp contrast to the last decade, when the VIP junkets were the casino sector’s main source of income.
[See more: Mass market gaming revenue is almost 95 percent of pre-pandemic levels]
The experts were of the view that Macao’s shift away from the VIP market was “a long-term positive” and expressed their belief that the city’s gaming industry is “better positioned in the long run,” highlighting the example of Singapore, which has achieved success with its non-junket focus.
In the report, CBRE also forecast that the visitor rate and gross gaming revenue (GGR) in 2024 would surge by almost 30 percent, estimating that the city could expect a GGR of US$28 billion (225.6 billion patacas) in 2024 and US$29 billion (233.65 billion patacas) in 2025.
Overall, CBRE held an optimistic view of the future of Macao’s casino sector, noting that the government and concessionaires were on the same page when it came to pertinent issues including the integration of the city into the Greater Bay Area and the need to promote international tourism, which it noted “bodes well for Macao’s long-term gaming prospects.”
