• 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 grind up to 80 pct big spenders: Morgan Stanley

Jun 18, 2015 Newsdesk Latest News, Macau, Top of the deck  


Macau grind up to 80 pct big spenders: Morgan Stanley

Macau’s casino gambling sector is far from having a mass market in the Las Vegas sense, which might account for why the absence of key players in Macau is having such a big negative effect both in the VIP and mass-market segments, says a note from Morgan Stanley Research Asia Ltd.

First quarter mass-market gross gaming revenue (GGR) in Macau fell by 27.0 percent year-on-year. VIP baccarat GGR fell 42.1 percent, according to official data.

The Morgan Stanley report on the Macau market, by Praveen Choudhary, Alex Poon and Thomas Allen, suggested that 70 percent and possibly as much as 80 percent of the gambling defined by Macau’s regulator as mass market is actually done by ‘premium mass’ customers – those playing high stakes games but at mass market tables rather than VIP tables.

“The conventional segmentation of mass revenues into premium and grind is based on where the customer plays in the casino (high limit area, etc) or membership scheme but not on the amount they gamble. Many high rollers actually played on grind mass tables; hence, we saw Sands China’s grind mass revenue decline similarly in 1Q15 (-21 percent year-on-year) to premium mass (-29 percent year-on-year),” wrote Morgan Stanley in its report published this week.

While premium mass revenue is believed by some investment analysts to represent up to 50 percent of the mass market, the actual mix “could be as much as 70 to 80 percent,” the institution added.

When the VIPs either stop coming or visit with lighter frequency, and the same thing happens with the high end “mass market” players, it has an impact on GGR numbers that is disproportionate to the numbers of people involved, suggested Morgan Stanley.

“The ratio of table minimum bet to disposable income in Macau/China is still much higher than that in Las Vegas/U.S.,” its team wrote.

“The ratio in Macau/China is 0.10x, based on table minimum bet of HKD300 [US$39] and urban household average disposable income per capita of RMB2,400 [US$386] per month,” for 2014, said Morgan Stanley.

Its analysts added that in the Las Vegas and wider U.S. casino market, table gambling was simply far more affordable for the average local citizen. There, minimum bets were US$30 and U.S. per capita disposable personal income judged on a monthly basis was US$3,467 as of April 2015, giving a ratio of only 0.01x.

“Chinese visitors [to Macau] dropped by 4 percent year-to-date to April, as high rollers are visiting Macau less. This also implies that [Macau] boosting penetration [of the mainland market] has to come at the expense of lower pricing and margin in future, and that every incremental customer would have lower spending power,” wrote Morgan Stanley.

Staying away

Current barriers on entry to Macau for VIP and premium mass customers are said by analysts to be both personal – avoidance of getting a name as a big spender during China’s anti-corruption campaign; and practical – because it is getting more troublesome to organise.

Brokerage Sanford C. Bernstein Ltd said in a note on Tuesday it estimated that the average VIP player in Macau has been accustomed to coming approximately four times per year, staying an average of one night per visit.

Analysts Vitaly Umansky, Simon Zhang and Bo Wen, said that in 2013, 2.6 million visits by mainland Chinese to Macau – 14 percent of all arrivals from the mainland – involved use of a transit visa. “However, 79 percent of them (approximately 2.1 million visitors) did not travel to a third destination and returned to China,” the analysts added.

In June 2014, Macau’s Public Security Police tightened the enforcement of the transit visa rules. That leaves the other main options as China’s Individual Visit scheme (IVS) visa system designed for independent travellers, or entry as part of a group tour.

“As IVS and group visas require more planning, transit visas were often being utilised for spur of the moment trips. Such last minute trips are now more difficult to implement,” said Sanford Bernstein.

There is a suggestion that the IVS route to Macau is also being tightened.

Analysts Jamie Soo and Adrian Chan from Daiwa Securities Group Inc said in a note on June 8 that, with effect from July 1, “visa holders will be prohibited from entering Macau more than three times within a 60-day period, regardless of travel to a third destination.”


  • tweet
Related articles
  • Macau catalysts distinct from other China sectors: MS
    Macau catalysts distinct from other...

    May 24, 2023  

  • Macau 2023 mass GGR maybe 88pct of 2019 levels: MS
    Macau 2023 mass GGR maybe 88pct of 2019...

    May 05, 2023  

More news
  • Lam Yi Young resigns as deputy CEO Resorts World Sentosa
    Lam Yi Young resigns as deputy CEO...

    Jun 02, 2023  

  • China stimulus package could benefit Macau stocks: CBRE
    China stimulus package could benefit...

    Jun 02, 2023  


Latest News

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Lam Yi Young resigns as deputy CEO Resorts World Sentosa

Jun 02, 2023  

Genting Singapore Ltd says Lam Yi Young has resigned from his role as deputy chief executive of Resorts World at Sentosa Pte Ltd. The latter firm is an indirect wholly owned subsidiary of Genting...
Read More
China stimulus package could benefit Macau stocks: CBRE

China stimulus package could benefit Macau stocks: CBRE

Jun 02, 2023  

G2E Asia 2023: Singapore

  • Alfastreet’s new Verso cabinet heading to Asian markets
    Alfastreet’s new Verso cabinet heading to Asian markets

    Jun 01, 2023  

    Alfastreet, a manufacturer of electronic gaming machines,...
  • Sega Sammy Creation growing land-based, eyes online
    Sega Sammy Creation growing land-based, eyes online

    Jun 01, 2023  

    Casino equipment maker Sega Sammy Creation Inc is tweaking...
  • iGaming growing in Asia, ops tackling challenges: Uplatform
    iGaming growing in Asia, ops tackling challenges: Uplatform

    Jun 01, 2023  

    The iGaming segment in Asia “has grown rapidly” since...
  • ‘See before you play’ slot marketing tool, say tech suppliers
    ‘See before you play’ slot marketing tool, say tech...

    May 31, 2023  

    Showing slot machine players – via animations on the...
  • Macau stocks tied to China outlook: Bloomberg analyst
    Macau stocks tied to China outlook: Bloomberg analyst

    May 31, 2023  

    Macau stocks in likelihood “have been punished too much...
  • Investors still eye possible fresh IR locations in Japan: scholar
    Investors still eye possible fresh IR locations in Japan:...

    May 31, 2023  

    There are foreign companies still interested in investing...
  • Thai casino law possible in 2024, IR in 2030: govt adviser
    Thai casino law possible in 2024, IR in 2030: govt adviser

    May 31, 2023  

    Thailand could pass the necessary enabling legislation for...
  • China still ‘critical’ to Asian markets: G2E Asia panel
    China still ‘critical’ to Asian markets: G2E Asia panel

    May 30, 2023  

    China will remain a key market for Asian gaming...
  • Much interest in state casinos sale, says Pagcor boss Tengco
    Much interest in state casinos sale, says Pagcor boss

    May 30, 2023  

    Alejandro Tengco (pictured in a file photo), chairman and...
  • Gaming industry in for a very exciting period: Bill Miller
    Gaming industry in for a very exciting period: Bill Miller

    May 30, 2023  

    There are “plenty of reasons” for the global gaming...
  • IGT flags route to high-performing games for Asia
    IGT flags route to high-performing games for Asia

    May 30, 2023  

    Gaming equipment provider International Game Technology Plc...
  • G2E Singapore trade show, conference begins today
    G2E Singapore trade show, conference begins today

    May 30, 2023  

    The Global Gaming Expo (G2E) Asia 2023 Special Edition:...
  • Novomatic’s Black Edition II cabinets at G2E in Singapore
    Novomatic’s Black Edition II cabinets at G2E in Singapore

    May 29, 2023  

    Austria-based gaming equipment maker and operator Novomatic...
  • Uplatform to show latest iGaming products at G2E Singapore
    Uplatform to show latest iGaming products at G2E Singapore

    May 25, 2023  

    Sports betting and online casino operating platform...
  • L&W ambition to be No1 in Asia well on its way: SVP gaming
    L&W ambition to be No1 in Asia well on its way: SVP...

    May 24, 2023  

    The business performance in Asia of gaming content and...
  • G2E Singapore expecting 6k visitors, 100+ exhibitors
    G2E Singapore expecting 6k visitors, 100+ exhibitors

    May 18, 2023  

    The organisers of Global Gaming Expo (G2E) Asia 2023...
  • ‘Dragon Unleashed’ slot link by L&W at G2E in Singapore
    ‘Dragon Unleashed’ slot link by L&W at G2E in...

    May 17, 2023  

    Gaming content and equipment supplier Light & Wonder...
  • Sega Sammy Creation new multi-ETG at G2E in Singapore
    Sega Sammy Creation new multi-ETG at G2E in Singapore

    May 16, 2023  

    Casino equipment maker Sega Sammy Creation Inc is to...
  • Aristocrat at G2E Asia in Singapore previews Year of Dragon
    Aristocrat at G2E Asia in Singapore previews Year of Dragon

    May 09, 2023  

    Casino slot machine and digital gaming content provider...
  • IGT ‘Prosperity’ link in Asia show debut G2E in Singapore
    IGT ‘Prosperity’ link in Asia show debut G2E in...

    May 05, 2023  

    The Global Gaming Expo (G2E) Asia event in Singapore is the...
  • Thai parliament adviser on casinos attending G2E Singapore
    Thai parliament adviser on casinos attending G2E Singapore

    May 04, 2023  

    An adviser to a Thailand parliamentary committee mulling...

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$8.1 billion

Macau’s casino gross gaming revenue in the five months to May 31



Most Popular

  • Lam Yi Young resigns as deputy CEO Resorts World SentosaLam Yi Young resigns as deputy CEO Resorts World Sentosa June 2, 2023
  • MBS en route to US$500mln quarterly EBITDA: LVS bossMBS en route to US$500mln quarterly EBITDA: LVS boss June 1, 2023
  • China stimulus package could benefit Macau stocks: CBREChina stimulus package could benefit Macau stocks: CBRE June 2, 2023

Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us