Macao Casinos Face Shift: Base Mass Down, Premium Up

Key Takeaways:

• Base mass gambling in Macao shows signs of slowdown
• Premium mass segment continues to expand
• Economic conditions in mainland China influence betting trends

Macao's casino landscape is undergoing a shift, with the base mass gambling sector experiencing a noticeable decline while the premium mass segment continues to thrive. According to Citigroup's March table survey, the average minimum bets in the base mass sector have dropped by 9% year-on-year, signaling a potential change in the gambling habits of more budget-conscious players.

S&P Global Ratings attributes this trend to the sensitivity of base mass players to economic fluctuations, such as employment uncertainties and earning prospects. The current economic headwinds in mainland China, Macao's primary source of gamblers, are likely contributing to this cautious approach among lower-stakes players.

This development raises questions about the long-term viability of the base mass segment and whether casinos need to adapt their strategies to accommodate changing player behaviors. The situation underscores the importance of diversification in Macao's gaming industry to maintain overall growth.

In contrast, the premium mass segment is showing resilience and growth. Citigroup reports a 13% increase in total wagers compared to March 2024, driven by a significant rise in player numbers. This growth has offset the reduction in average wager sizes within this segment.

The evolving landscape is also reflected in technological advancements within Macao's casinos. The rollout of smart table technology continues, with City of Dreams now operating entirely smart mass baccarat tables. This makes Melco the fifth casino operator in Macao to fully deploy smart table technology, indicating a broader industry trend towards modernization and efficiency.

Despite these shifts, Citigroup maintains its gross gaming revenue forecast for March at 19.5 billion patacas ($2.42 billion), matching the previous year's figures. This stability in overall revenue projections suggests that the growth in premium mass gambling is compensating for the decline in the base mass segment.

As Macao's casinos navigate these changes, the industry's ability to adapt to evolving player preferences and economic conditions will be crucial. The contrasting trends between base mass and premium mass segments highlight the complex dynamics at play in one of the world's leading gambling destinations.