Macquarie Experts Warn of Macau Casino Market Shifts

Late in March, law enforcement in Macau raided a total of eight jewelry shops over suspicion of illegal currency exchange activities. The authorities suspected nearly a dozen people of moving massive sums of $74 million with the help of the jewelry shops that served as a front.

Overall, several dozen people, suspected of being involved in the illegal operation have been detained. Now, according to expert analysts, the recent police raids may have an impact on the gross gaming revenue (GGR) results in the months to come, likely affecting the premium and mass markets across Macau.

Busted Casino Hosts May Affect Premium and Mass Casino Segments

That’s the opinion of Macquarie’s experts, Chad Beynon and Sam Ghafir, who were recently quoted by Inside Asian Gaming. Reportedly, some of the people who had been detained late last month were casino hosts. This, according to Beynon and Ghafir, may translate to an impact in GGR in the upcoming months, “particularly in the premium and grind mass segments.”

In total, the raids saw 33 people detained on suspicion of being involved in illegal currency exchange activities. That total breaks down to 11 mainland residents and 22 Macau residents detained by law enforcement. Notably, out of the 33 detainees, 14 held the role of casino hosts at three Cotai-based casinos.

Macquarie’s experts explained: “We believe this would lead the market to further revise down the full-year GGR.” Such an impact may worsen the recent downturn in Macau’s market, and it comes at a time when the government acknowledged that it may not reach the GGR revenue target it has set for 2025.

Changes to Macau’s Casino Sector Are Ongoing

The potential negative impact on GGR predictions comes at a time when Macau retains an optimistic outlook amidst the ongoing diversification and restructuring of the gaming industry. Ultimately, the diversification of the sector seeks to make it less reliant on the gambling segment and attract tourists with different amenities.

Late last month, Macau reaffirmed its plans to scrutinize casino non-gaming spending. Under the latest effort, each casino concessionaire would have to submit regular reports about non-gaming investments progress and track such activities year after year.

All concessionaires in Macau have agreed to invest in non-gaming features under their license conditions in effect for the next decade. In total, they are expected to invest MOP108.7 billion ($13.6 billion) into non-gaming amenities that can help the industry shift from heavy reliance on gambling and become more attractive to tourists.