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电报群搜索机器人:Casino suppliers quit Macau for resurgent Singapore, Philippines

电报群搜索机器人:Casino suppliers quit Macau for resurgent Singapore, Philippines

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Next move: Gaming machines at MGM Cotai in Macau. Casino equipment suppliers are leaving the city for more welcoming markets, as China’s zero-Covid policy hurts tourist arrivals and gaming visitors. — Reuters

MACAU: Suppliers of slot machines, baccarat table systems and other casino equipment are moving out of Macau to more welcoming markets, in another sign of China’s zero-Covid policy has wrought on the formerly bustling gambling hub.

With demand in Macau waning, Light and Wonder Inc, a leading provider of products used in casinos, is relocating its expatriate staff to the Philippines, which has become its top market in Asia and where it is opening a new office.

Another equipment maker from Japan is also shifting employees to the Philippines and Singapore.

The Japanese company is moving as many as 30% of its employees and has taken more than half of its inventory out of Macau due to supply-chain challenges, a person familiar with the matter said, asking not to be identified discussing information that wasn’t public. The person also asked for the company not to be named.

It has seen revenue plunge about 90% in Macau as casinos shelved purchasing plans amid a prolonged industry slump.

Macau’s casinos aren’t buying any new equipment until they get licences to continue operating at the end of the year, and without fresh sales, Light and Wonder is only getting limited revenue from maintenance and technical support, said Ken Jolly, the US company’s Asia vice-president and managing director.

“The Philippine market has become a dominant in Asia, and it makes sense for us to put more staff there,” Jolly said.

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After well over a decade as the world’s pre-eminent casino centre, Macau ceded that crown back to Las Vegas as Covid lockdowns and China’s travel bans choked off the usual flood of people coming in by air, sea and land.

Prior to the pandemic, Macau’s gambling market, heavily reliant on mainland customers, was six times bigger than Vegas’s, with annual revenue of US$36bil (RM162bil).

Macao Gaming Equipment Manufacturers Association chairman Jay Chun said he knew of at least four multinational casino suppliers relocating manpower and resources overseas.

The trend could accelerate after the government announced a cap of 12,000 gaming machines across the city for 2023 under a new casino law. There were already 17,000 machines in the market in 2019.

Macau was under pressure even before the pandemic struck, with Chinese President Xi Jinping cracking down on high-rolling gamblers in the territory as part of a campaign against money-laundering, corruption and capital flight.

This June, a virus flare up prompted China to suspend quarantine-free travel with Macau for more than a month, a devastating blow to casino operators already bleeding millions of dollars.

Tourist arrivals averaged a paltry 300 a day in July and gaming revenue dropped to a record low of US$49mil (RM220mil) in the month, when a lockdown also shuttered casinos for two weeks.

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