The Fall From Grace in Macau As Casino Suppliers Take Their Businesses Elsewhere
The gambling market in Macau has since been on the path to crashing, and this is no thanks to the awful zero policy in implementation in China. This policy has not given the market the chance to recover from the severe downgrade caused by the Covid pandemic.
Thus, the value of the market keeps plummeting, and companies are in danger of running down. Hence, these gambling supply companies have increasingly begun to shift bases to better places in search of greener pastures.
Macau is constantly dipping in standards and has degraded from one of the most sought-after gambling destinations to a more pathetic state to be avoided by travelers or tourists. In addition, the after-pandemic zero policy effect has been devastating, and it even gets worse as a massive decline in the value of the market is most likely to occur. All of these factors and realities have led many gambling companies in Macau to start deciding to leave there.
The state of Macau keeps deteriorating, but the market in Singapore, the Philippines, and even South Korea has been progressing quite nicely post-pandemic. These countries have exhibited great powers of recovery from the detriments left over by the covid pandemic. Hence, gambling supply companies are motivated to join the movement out of Macau to any one of these flourishing destinations.
The potential migration of these game suppliers out of Macau would only contribute further to its bad state. There would certainly be no chance of recovery when most of the crucial companies over there have packed up shop. Thus, the state of the market will keep getting worse.
We are in the process of seeing one of the worst degradations in the history of the gambling industry. One of the biggest companies, Light & Wonder Light & Wonder Inc., is rumored to be off to the Philippines in search of greener pastures.
Also, Macau would extend these problems to casino operators as they would most likely not have access to the best options in the industry anymore and certainly would be less interested in pleasing the gamblers within Macau. With the massive drop in revenue, these casino operators may not be able to stay afloat for much longer.
It has been discovered that about four of the top gambling-related suppliers are in cohort to leave Macau for Singapore, South Korea, or the Philippines. These companies are only looking out for their best interests as Macau revenues plummet to a new low of 9%. However, these alternative states have seen massive recoveries up to 70% from the aftermath of the Covid pandemic.
To make the outlook of things worse, the Macau gambling revenue, which used to be six times the Las Vegas revenue, has seen a severe fall in value to a third of what it used to be. Likewise, travelers now have second thoughts about visiting Macau as they still fear being caught off-guard by another pandemic and getting stuck over there.
Bringing all the current happenings into perspective with the device and software companies leaving, operators closing shop, and tourists avoiding Macau, we may just yet have not seen the worst that might happen to the state of the gambling industry over there.