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
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.