GMA Analyst Says Macau to Become a Second Tier Casino Hub Soon

As stated by a senior analyst at the Global Market Advisors LLC in the US, Andrew Klebanow, the Downtown peninsula-based gaming zone in Macau is likely to emerge as a second tier hub for casino and gambling operations in the region in the wake of a series of large-scale resorts being developed in Cotai.

According to Andrew, the traditional gaming market in Macau is likely to experience a similar shift as the world’s biggest casino hub, Las Vegas in the United States, underwent a couple of decades back when it rapidly overcame the growth and popularity of the traditional gaming district in the downtown.

He said that the gaming industry in Macau is likely to witness a similar pattern as when the launch of the Mirage in Las Vegas back in 1989 paved the way for a series of other casino establishments along the strip, as a result of which, the downtown Las Vegas underwent a degradation transforming into a second tier casino and gaming destination for players looking for cheap accommodation and low-cost food. So, basically, it not only implied a loss of market share for the existing casino operators but also dissuaded them against re-investing in newer properties in the downtown. The same is likely to happen in Macau, where the traditional casino operations in the peninsula are likely to lose a major portion of their market share to the newer and more technologically advanced gaming facilities coming up in the Cotai strip.

To further support this statement, statistics show that a majority of the recent hotel accommodations have been established in Cotai rather than the Macau Peninsula, with most of the rooms being regarded as five-star properties. However, Andrew remarked that a shift in market share does not necessarily imply that the existing gambling and casino facilities in Macau are heading towards an unexpected closure soon.

He further added that the majority of the famous casino properties in Macau will deftly survive the transformation solely due to the added advantage of being more easily accessible to their old customers. While some of the older operators in Macau will most probably give way to newer companies who are better equipped to run the operations, the properties in Cotai will continue to increase their market share consistently.