• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Macau casino smoke ban bill possibly this week: DB

Jun 30, 2015 Newsdesk Latest News, Macau, Top of the deck  


Macau casino smoke ban bill possibly this week: DB

An expected total ban on casino smoking in Macau is likely to shave 10 percent to 15 percent off already pressured VIP revenue, said a note from Karen Tang of Deutsche Bank AG on Monday.

VIP baccarat casino gross gaming revenue (GGR) fell 42.1 percent year-on-year in the first quarter, according to Macau government data.

Ms Tang said a bill to ban smoking inside casinos, including VIP rooms – and that would eliminate airport-style smoking lounges that are currently allowed on the otherwise no-smoking mass gaming floors – could be introduced by the Macau government this week.

On June 16, Macau’s Secretary for Social Affairs and Culture, Alexis Tam Chon Weng, said the government would send a bill on the banning of casino smoking – and specifically outlawing smoking lounges on mass floors and smoking in VIP rooms – to the city’s Legislative Assembly before the end of the month. He later said such a bill might be sent to the Assembly early in July.

“When the [Macau] mass gaming floors were made non-smoking in October 2014, mass gaming revenue fell 12 percent sequentially. We think that when [the expected] smoking ban is extended to VIP rooms in early 2016, the impact on VIP revenue would be similar (10-15 percent),” wrote Ms Tang.

According to the World Health Organization (WHO), there are more than 300 million smokers in China, nearly one-third of the world’s total. The WHO, quoting a 2010 survey, said nearly one-third (28.1 percent) of the mainland China population smokes, including 52.9 percent of men and 2.4 percent of women. In May this year, 66 percent of tourist arrivals to Macau were from mainland China according to the city’s Statistics and Census Service.

Analysts Anthony Wong and Angus Chan from UBS Securities Asia Ltd said in a Monday note on the Macau smoking issue: “The October 2014 ban on mass floor (smoking lounges allowed) has had a negative impact on demand, in our view. Operators have noticed changes in player behaviour in: 1) shorter time on device; and 2) lower average bet sizes as game is disrupted.”

They added: “The relatively stable slots segment also contracted -16 percent quarter-on-quarter in the fourth quarter 2014. The behavioural changes do not seem to have reversed the last few months. It is hard to exactly quantify changes in player behaviours, but if the bill pushes through, we think it is reasonable to assume 10 to 15 percent drag on VIP (already in our numbers), and possibly approximately 10 percent impact on mass/slot revenues.”

UBS added that the current Legislative Assembly session “could end on 15th August, which means debates will continue to intensify, and a possible voting on the bill might happen in the immediate months ahead”.

Lounges compromise

Ms Tang of Deutsche Bank noted: “According to a survey conducted by KPMG (commissioned by the six casino operators), if a full smoking ban is implemented, VIPs would look to reduce their Macau trips by 17 percent and cut their length of stay by 24 percent. Also, 32 percent said they would divert trips away from Macau. Recognising the government’s strong will to ban smoking in VIP rooms, the six operators now focus on lobbying to keep the airport-style smoking lounges, citing this survey where 66 percent (of the 34k casino worker respondents) said they support smoking lounges inside casinos.”

She added: “Given the legislative backlog, we think the bill may only be passed in the fourth quarter of 2015 with implementation starting early 2016.”

Smoking lounges were introduced to main casino floors prior to October 2014, after inspection and approval by government officials. The industry had understood they were an acceptable compromise for the government in its efforts to protect non-smokers and casino workers from the effects of second-hand smoke on casino main floors. Until October, up to 50 percent of Macau casino main floors were available for smoking. Prior to January 2013, smoking was allowed anywhere on main casino floors in Macau.

According to a report in the English-language Macau Daily Times newspaper on Monday quoting three Macau casino operators, major investment has been made in Macau casino smoking lounges with sophisticated air extraction and air treatment equipment.

MGM China Holdings Ltd, operator of MGM Macau, has four smoking lounges on its main floor, using a negative pressure system that keeps smoke from leaking out onto the main floor when the lounge doors are opened.

Sands China Ltd has 18 smoking lounges. There are five at the Venetian Macao, nine at Sands Cotai Central and four at Sands Macao, said the media outlet, quoting a senior manager saying that smoke-filled air in the lounges is treated with HEPA (High-efficiency particulate arrestance) filters even before it is extracted. The lounges also use a similar negative pressure system to MGM China. Melco Crown Entertainment Ltd is said to have 17 smoking lounges across its Macau properties using this technology.


  • tweet
Related articles
  • Philippine Senate committee supports ban on POGOs
    Philippine Senate committee supports...

    Sep 21, 2023  

  • Analysts flag likely 2pct m-o-m rise in August Macau GGR
    Analysts flag likely 2pct m-o-m rise in...

    Aug 02, 2023  

More news
  • Resorts World Sentosa fined again for AML rule breaches
    Resorts World Sentosa fined again for...

    Sep 27, 2023  

  • Wynn Macau Ltd, Broadway Asia tie up for resident show
    Wynn Macau Ltd, Broadway Asia tie up...

    Sep 26, 2023  


Latest News

Resorts World Sentosa fined again for AML rule breaches

Resorts World Sentosa fined again for AML rule breaches

Sep 27, 2023  

The operator of the Resorts World Sentosa casino resort in Singapore has been fined for regulatory breaches in the 2022/23 reporting period, according to the first annual report of Singapore’s...
Read More
Wynn Macau Ltd, Broadway Asia tie up for resident show

Wynn Macau Ltd, Broadway Asia tie up for resident show

Sep 26, 2023  

G2E Asia 2024 set for Macau in June, no Singapore event

G2E Asia 2024 set for Macau in June, no Singapore event

Sep 26, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The gambling landscape will continue to evolve, and we must stay vigilant and responsive to emerging trends and technological advancements”

Teo Chun Ching

Chief executive of Singapore’s Gambling Regulatory Authority



Most Popular

  • Any Macau clamp on money changing may hurt GGR: punditsAny Macau clamp on money changing may hurt GGR: pundits September 25, 2023
  • Macau govt sets junket cap per casino operator for 2024Macau govt sets junket cap per casino operator for 2024 September 25, 2023
  • Wynn Macau Ltd cancels K-pop festival scheduled for OctWynn Macau Ltd cancels K-pop festival scheduled for Oct September 25, 2023
  • 26 Capital to delist, liquidate as Okada Manila merger fails26 Capital to delist, liquidate as Okada Manila merger fails September 25, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us