China Digital Byte series

Gaming in Asia’s Digital Age

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China Digital Byte series Looking beyond the high-rollers Gambling in Asia's Digital Age Tapping into the growth of gaming Macau's gaming future is worth betting on Last year, the aggregate gaming market in Macau and Hong Kong delivered turnover of $38 billion, thanks largely to continued growth in Macau's super-casinos and high rollers. Additionally, the 13.5% year-on-year growth and increasing number of casinos in Macau is demonstrating huge growth potential of the gaming market in the Asia-Pacific (APAC) region. Figures show that profit margins for casinos are largely contributed to by the mass market rather than the high rollers, and this trend is set to increase further with the rising economic income of middle-class Asian players. In 2010, when the United States comprised 50% of the global gaming market, APAC counted for only 30%. By 2015, however, APAC is expected to be the largest, accounting for 43.4% of total global revenues, ahead of the US at just over 40.1%. Historically, the high rollers have accounted for the 'lion's share' of Macau's growth, driven by junketeers who have corralled, orchestrated, and managed the process of delivering these high spenders into the elite areas of the casinos. More recently, Macau's dominance is being threatened, with super-casinos being planned across the Asia Pacific region – from Australia to Russia – all looking to cash in on the high spenders based in Asia arriving from markets ranging from Japan to the Philippines. It's not all about the high rollers Macau's major casions 2013 forecast, % share by market Revenues EBITDA VIP Mass market 0 20 40 60 80 Source: Deutsche Bank Connectivity to the region is improving, with new rail, road and ferry transport solutions making gaming hubs such as Macau, and in the future Hengqin, more accessible. www.pwchk.com/digitalconsulting

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