On Monday, Reuters reported that revenue in Macau rose more than 17 percent in August compared to the same time last year.
According to government data, the $3.8 billion generated in August was the second highest for the year. The growth met analysts predictions.
Macau, formerly a Portuguese colony, became part of China in 1999. It’s gambling revenue is tied closely to that of the Chinese economy as more than two-thirds of its guests come from the mainland.
The Reuters article mentions that most analysts are bullish on Macau, citing low penetration among China’s 1.3 billion citizens and strong consumer sentiment despite a slowdown in growth.
The majority of visitors that Macau sees are referred to as ‘mass market’ spenders and are growing at a faster pace compared to those of the VIP variety.
Casinos would like to reduce their dependence on those high-rollers, that take in nearly 70 percent of all gambling revenue.
Casinos have been battling to draw in members of China’s expanding upper-middle class over the last year. The coveted market segment can spend anywhere from a few thousand yuan to sometimes close to one million. The premium mass clientele generate higher margins and more stable revenue for Macau than their high-rolling counterparts.
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