Dynamic Shifts in Asian Gaming: MGM's Rise in Macau, Contrasting Fortunes in the Philippines, and Marina Bay Sands' Dominance in Singapore

The Asian gaming industry underwent substantial transformations in 2023, marked by significant shifts in market dynamics across key hubs such as Macau, the Philippines, and Singapore. Analyzing these regions provides insights into the changing fortunes of operators, shaped by factors including demographics, legislative changes, and alterations in visitation patterns.

Macau: MGM China's Remarkable Gain

The lifting of prolonged COVID measures in Macau, Hong Kong, and China in January 2023 coincided with the issuance of new gaming licenses. MGM China emerged as a clear winner, experiencing a remarkable 6.5% increase in market share compared to November 2019, reaching a total of 16.5%. This surge was notable as it impacted the market share of Galaxy Entertainment Group and SJM, both of which had heavily relied on the VIP segment. Macau's directive to shift towards a mass-market model resulted in MGM China gaining ground at the expense of its competitors.

Detailed Market Share Comparison (November 2019 vs. November 2023):

Sands China: 24% to 24.5%

Galaxy: 19.5% to 16.5%

MGM China: 10% to 16.5%

SJM: 16.5% to 13%

Melco: 16.5% to 15.5%

Wynn: 13.5% to 14%

Philippines: Contrasting Fortunes for Resorts

The Philippines witnessed robust growth in its gaming sector, particularly in Manila, throughout the year. However, the last quarter results displayed negative yearly comparisons. Newport World Resorts emerged as a growth leader, expanding its market share from 16% in December 2019 to nearly 28.7% in December 2023. In contrast, Okada Manila experienced a decline, with its market share shrinking from 32.7% to 21.1%.

Detailed Market Share Comparison (December 2019 vs. December 2023):

Newport World Resorts: 16% to 28.7%

Solaire: 28.8% to 28.5%

Okada Manila: 32.7% to 21.25%

City of Dreams Manila: 22.5% to 21.1%

Ben Lee pointed out that the domestic market fueled Entertainment City's growth, concluding the year with a 24% yearly increase in Gross Gaming Revenue (GGR), primarily driven by mass tables and slots.

Singapore: Marina Bay Sands' Dominance

Singapore's gaming landscape in 2023 reaffirmed Marina Bay Sands' unequivocal dominance in the duopoly. Holding 70% of the market share in 2019, Marina Bay Sands increased its share to 76.3% in 2023. Resorts World Sentosa experienced a decline in GGR to $875 million, solidifying Marina Bay Sands' continued leadership.

Future Considerations: Vietnam and Thailand

Looking ahead, Southeast Asia presents growth potential, albeit with potential cannibalization risks. The focus is on Vietnam, where regulatory hurdles remain. However, attention is also directed towards Thailand, where the possibility of casino legislation poses a significant threat to Vietnam's gaming industry. Ben Lee emphasized the need for operators to explore opportunities in Thailand, as potential legalization could have a profound impact on the broader Asian gaming landscape.

In summary, the Asian gaming industry in 2023 witnessed dynamic shifts, shaped by regulatory changes, evolving demographics, and transformations in market dynamics across key hubs.

By fLEXI tEAM