China’s decision to increase the number of places where people can apply for Individual Visit Scheme (IVS) exit visas to travel to Macau is “hugely positive” for the city’s gaming industry, says Robert Goldstein (pictured in a file photo), chairman and chief executive of Las Vegas Sands Corp, the parent of Macau casino firm Sands China Ltd.
“I think the most recent government support for the IVS scheme is also hugely positive for Las Vegas Sands and the [Macau] market,” stated the executive during a session on Wednesday at the Bernstein 40th Annual Strategic Decisions Conference Presentation.
From Monday (May 27), eight outer-mainland cities became active members of the IVS scheme: Taiyuan in Shanxi Province; Hohhot in Inner Mongolia Autonomous Region; Harbin in Heilongjiang Province; Lhasa in Tibet Autonomous Region; Lanzhou in Gansu Province; Xining in Qinghai Province; Yinchuan in Ningxia Hui Autonomous Region; and Urumqi in Xinjiang Uygur Autonomous Region.
That was only three months since China’s State Council made its first IVS-list update since pre-pandemic times, designating two mainland large-population centres – Qingdao and Xi’an – as eligible for the scheme.
Mr Goldstein said the industry was “kind of gratified” to see gross gaming revenue (GGR) in Macau “approaching US$30 billion”.
“Macau’s just simply a recovery story based on GGR,” suggested the CEO, adding that the expansion of the IVS scheme could help the market grow further.
He observed: “I think you’re going to see Macau continue to accelerate to US$30 billion or US$32 billion in the near term. It’s a market that is going to continue to grow despite the economic issues that are prevalent today in China, because Macau has proven to be very resilient, and the growth is there in all segments.”
Mass business, smart tables
Macau recorded GGR of MOP183.06 billion (US$22.75 billion) in full-year 2023, following the relaxation of Covid countermeasures in January that year. In the first four months of 2024, market-wide GGR stood at MOP75.87 billion, up 53.7 percent from a year earlier, according to official data.
Mr Goldstein said the premium mass segment “has led the recovery” in Macau since last year. “Obviously, we would like to see more recovery in the base mass; it would be strong for Las Vegas Sands, but also for the market to see more base mass business,” he added.
A recent poll conducted by brokerage CLSA Ltd suggested that Chinese “premium mass” gamblers still like to spend in Macau, with 70 percent of such players in a survey sample saying they plan to make a repeat visit before March 2025.
The CEO also mentioned the growing interest by operators in ‘smart’ casino tables at their respective casinos.
“They’re terrifically advanced products that enable us to do a better job of policing the game for both the customer and our own benefit,” noted the executive.
The Macau authorities have been encouraging use of smart tables as a way for the city’s industry to manage more effectively casino operations. In that regards, several Macau operators have recently flagged plans to use radio frequency identification (RFID) gaming tables.
According to Mr Goldstein, the use of smart tables allows operators to “market better” their products to customers, as “it takes out the human element in terms of the customer read”.
“The future of gambling, I think, is tied to smart tables. They simply enable the operator to do better things … and provide the customer a better experience,” he stated.
The executive added: “Smart tables are going to revolutionise gaming. We’re fully invested in smart tables in both Macau and Singapore and that’s our future. We believe it’s a very positive development for the industry.”
