Mass market growth to flatten in October

2014/9/23

From:Macau Business Daily

Deutsche Bank expects the mass market to go flat in October due to visa restrictions on Mainland Chinese visitors and Beijing’s anti-graft policy. Meanwhile, the German Bank says that the new wave of casinos opening from 2015 onwards will affect the gaming industry by reducing mass table yield.

In the last few months, mass market growth has been responsible for absorbing the impact of the negative growth of the VIP segment, while achieving double-digit growth itself. According to the latest report from Deutsche Bank, however, the mass market is expected to flatten out in October.
‘VIP is worsening from -17 percent in August to -25 to -30 percent in September. But our biggest concern is in mass. Mass is sharply slowing from 15 percent in July-August to 8-10 percent in September, and potentially to 0 percent in October’, it said.
This expectation has led the German Bank to lower the Gross Gaming Revenue (GGR) prediction for 2014 to -1 percent. For this cut, it also took into account the impact of the new smoking ban regulation on gaming floors that will come into effect on 6 October.
The slowdown in the mass market has primarily been driven by two factors since July: the restrictions imposed by the tighter transit visas that affected high-frequency gamblers and by the need for high-end premium mass market players to remain low profile due to the anti-graft campaign raging in Mainland China.
‘High-frequency mass players, especially those from Guangdong, were restricted by tighter transit visa since July 1st. This impacted SJM the most. Grind-mass casinos on the Peninsula saw mass revenue fall 10-25 percent from June to July’ the report says. ‘High-end premium mass players, similar to VIPs, now preferred to remain low profile in the anti-corruption climate. Visits by high-end premium mass had fallen by around 10 percent, according to some casino hosts’.
Another problem that is also affecting the mass market and that was stressed by the German bank is the disturbance caused by the construction of glass walls that will transform some current premium mass areas into ‘private gaming areas’ where people will be allowed to smoke after the new smoking ban regulation comes into effect.

Copyright@Macau Business Daily