Casinos in Cotai have been the biggest winners in Macau lately, taking a huge chunk of the profits from those casinos located on the peninsula. However, there’s no need to be concerned that the peninsula-based casinos could be forced out, as they still attract a different clientele that are more comfortable with the old-style venues.
Ben Lee, iGaming’s managing partner, told the Macau News Agency that the two districts attract completely different types of gamblers. He explained, “The Peninsula attracts the hardcore, old fashion, value-conscious gamblers who prefer the proximity to the range of dining, shopping and entertainment amenities. Cotai attracts more status conscious and family oriented clients.”
Union Gaming’s Macau expert, Grant Govertsen, told the media outlet that the solid money is on the peninsula venues retaining their share of the market. He said that the casinos will more than likely not see “any revenue declines in any sort of material way.” Govertsen added, “The reality is that while the Macau Peninsula has seen its share of GGR decline relative to Cotai, it is experiencing growth in revenues.”
The Union Gaming analyst pointed out that Cotai will still be the stronger segment. He expects gaming revenues in Cotai to likely account for as much as 70% of the overall gross gaming revenue (GGR) in Macau for the next several years as many of the visitors look for new experiences “beyond the casino floor.”
The Peninsula properties will more than likely need to alter their game plan in order to stay competitive with Cotai. Says Lee, “As the Peninsula properties get older, remembering they were the first generation casinos, the operators will have to rejuvenate their aging properties.”
Govertsen echoes that belief, stating that the older properties will more than likely be torn down to make way for newer venues with more hotel rooms and amenities.
Currently, Cotai takes in 61.2% of the GGR in Macau. In 2014, the GGR take was 45.5%. All of Macau’s largest and newest developments are located there and the area has continued to increase in popularity since Galaxy Entertainment opened the doors to its Grand Waldo Hotel there in 2006. 60% of the four- and five-star hotel rooms in Macau are located in Cotai.
