David Chow sees oportunity in gaming slowdown

The downturn of gaming revenue over the past nine consecutive months implies that there is an opportunity for the local gaming industry to “think about creating new markets,” suggests casino tycoon David Chow.
The billionaire, who also served as Macau’s CPPCC (Chinese People’s Political Consultative Conference) delegate, said in Beijing that casinos have recovered their costs and also possess cash and financing capability, which means, “Even if the gaming revenue plunges to MOP15 billion per month, it won’t be a big deal.”
Chow argued that the nine-month plunge only means that there have been no significant increases in gambling revenue, whereas the government still has sufficient surplus. Furthermore, he believes that the adjustment period will last two more years until the HK-Zhuhai-Macau Bridge is put into operation.
“The adjustment period depends on the conditions of the world that surrounds us. To find the new market, we need at least two years. And only when the supporting [transportation] facilities are built up can we drive up the tourist flow,” he stressed, as cited by TDM.
To explore other sources of visitors apart from the mainland, Chow said that supporting policies are still needed. The prompt construction of light railway transit, the city’s transport planning, and more international flights are among the aspects that need to take effect, as well as a more regulated tourism industry.
Nevertheless, the tycoon stated that the government is not responsible for the downturn, and that it should be able to overcome it. “Some [operators] have gained a lot of profit, which has made the license equivalent to being granted for free. With so much money already earned, why are they still arguing? Can’t we just earn less for now?”
As for the speculation that the government is going to grant one more gaming license to a Chinese-owned enterprise, Chow responded by saying that the sector needs to wait and see when the review of the industry starts.
“The review of the gaming industry is a political decision. If there’s really going to be one more, it will be fair to everyone,” he said. “It doesn’t matter how many gaming licenses we will have or how many people are operating casinos; the most important thing is that these people [operators] can explore new markets.” BY