According to recent information, the VIP gambling market in Macau is thriving, marking a steady growth in the second quarter of 2017. The resurgence of the industry is estimated to surpass the growth listed by mass market by about four times.
This Monday the Gaming Inspection and Coordination Bureau of Macau (DICJ) issued the figures showing the steady revival through which the industry is currently going. The figures published in it are showing the VIP baccarat has reached a revenue of MOP35.85 billion (US$4.46 billion). This amount was achieved by the casino operators in the region during the three months prior to the 30th of June. In comparison to the first quarter of 2017, the figure of the VIP gambling total is up by only 1 percent, but things change when we compare it to 2016.
When compared to the second quarter of 2016 the revenue shows an impressive 34.8 percent increase, since back then it was only MOP26.6 billion. When it comes to the revenue of the overall market in Macau, the improvement is more than visible, with 57 percent, compared to 51.5 percent for the same period last in 2016. If we look at the bigger picture, the total mass market gaming income dropped 2.6 percent, while gaining 8.1 percent year-on-year. This includes the revenue from slot machines as well and is now estimated to be MOP27 billion.
Mass market baccarat generated the bigger part of this amount of money, more precisely MOP19.7 billion. This is a growth of 5.7 percent in comparison to last year’s record. In the second quarter of 2016, the mass market baccarat was 36.1 percent which makes the current fall even more prominent – the current share has fallen to 31.3 percent.
The situation is similar when it comes to the revenue from slots. It falls almost 5 percent sequentially, but it marks 17.2 percent growth year-on-year, amounting to MOP3.1 billion this year. The number of slot machines which are currently operating in various casino venues all around Macau until the end of the second quarter has increased by 1.2 percent. The total number of machines to this moment is 16,204.
A crucial factor to take into account is the upcoming ban on smoking in VIP rooms, which are available in the casino venues in Macau. It is expected to become obligatory in 2019, which will result in smoking prohibition in these areas of the casino venues. Experts reckon this will lead to a drop in the surging VIP figures. The only legal way to smoke in Macau’s casinos will be in the specially designated lounges built in the VIP areas.
