Smaller operators like Wynn Macau and MGM China are capitalizing on a shift in consumer demographics, changing Macau's casino landscape. The gambling center is thriving again thanks to its wealthy premium mass clients, while bigger rivals like Sands China and Galaxy Entertainment are struggling to get back on track since they target the mass market's bottom end.
According to sports betting software reviews and news sites, the rebound trend favors wealthy premium mass consumers, who wager hundreds to several thousand dollars on high-limit baccarat as tourists flock back to the world's biggest gambling hotspot.
The high-roller VIP category, which used to be Macau's bread and butter, has shrunk due to the government's strict controls. The lowest-spending mass sector, with minimum bets around $60, has not recovered to 2019 levels.
Macau, with its projected GDP growth of 14% for this year, stands as a beacon of economic resilience. It is distinct from the rest of China, where gambling in casinos remains legal but spending is sluggish.
Sands China and Galaxy Entertainment are two larger operators whose shares have fallen 11.2% and 16.7% since the beginning of the year, respectively, due to their exposure to the lower end of the mass market. The data showed that Wynn Macau's shares increased by 15.7% and MGM China's shares by 46.6% during the same time period.
Revenues from gaming are on a steady path to recovery, expected to reach 80% of pre-COVID statistics this year. Government data further suggests that the number of visitors to Macau is steadily climbing, currently at 75% of pre-pandemic levels from 2019, instilling confidence in the industry's resilience.