Citigroup: High rollers back on city’s gaming tables

High rollers seem to have their bets back on the games of chance in Macau.

A weekly channel check from Citigroup noted that it has observed 24 whales so far this month – a figure that marks the highest single tally this year amid a weakening economy. 

Whales are used to describe players that bring to the table HKD100,000 to 500,000 per hand.

Citigroup analysts George Choi and Ryan Cheung said, “The 31% increase in player count likely implies the return of more casual Premium Mass players as well. However, their return dilutes the average wager per player by 20% in our survey.”

The analysts noted that both Grade-A Premium Mass players and the more casual Premium Mass players remain important for the sector as both players drive the city’s gross gaming revenue recovery during the second quarter.

“The number of Premium Mass players seen during our August 23 survey amounted to 468, compared to 357 last month, representing a 31% monthly increase and only 4% shy of this year’s peak attained in January 2023, which was Chinese New Year Golden Week.”

Tourism arrivals in the city are still on the rise during summer. In particular, the number of visitors from mainland China jumped by 25,994.4% year-on-year to 1,910,371, with 1,087,315 of them traveling under the Individual Visit Scheme.

Meanwhile, a note from JP Morgan Securities (Asia Pacific) Ltd. suggested that the revenues from mass-market players are set to recover to 100% of pre-Covid levels in the upcoming Golden Week in October. 

The investment bank also stated that in the first 20 days of August, revenues have reached MOP11.2 billion, a daily average of MOP560 million.

Analysts have also pointed out that the turnover of the mass market reached 90% to 95% of pre-Covid levels.

Further, a report from the Wall Street Journal has stated that the flock of visitors from the mainland amid China’s faltering economy has propeled the city to reclaim the title of the world’s gambling hub from Las Vegas.

In 2019, gambling revenue in Macau was six times that of Las Vegas, making Macau the world’s gambling hub.

However, gaming floors emptied during the pandemic due to Macau’s adherence to Beijing’s zero-Covid policy, causing casinos to bleed cash for three years.