Gaming | Mass continues to outweigh VIP at near-zero revenue level

Mass market gross gaming revenue continued to outweigh the VIP segment in the second quarter of 2020, even as casino revenues collapsed amid a visitation drought.
Gross gaming revenue for the second quarter amounted to just 3.2 billion patacas, down 95.6% from the 73.3 billion patacas recorded in the same quarter a year earlier.
The mass segment, which extends from slot machines to premium mass, continued to account for the majority of revenue, notwithstanding a 99% reduction in visitor to Macau.
According to data released by the Gaming Inspection and Coordination Bureau (DICJ), the mass market accounted for 53.5% of total gaming revenue in the second quarter of 2020, compared to 52.8% a year ago.
The data showed mass market gross gaming revenue was about 1.7 billion patacas in the second quarter, down 95.5% year-on-year and 89.0% from the first quarter. Meanwhile, aggregate VIP revenue for the quarter stood at just above 1.5 billion patacas, down 95.7% from a year earlier and 89.9% sequentially.
The mass segment overtook its VIP counterpart for the first time in the first quarter of 2019 and has continued to outsize the high roller segment since then.
However, gaming analysts previously told Macau Daily Times that current border crossing restrictions mean the VIP segment will likely recover much faster than the mass segment. This has been the case historically for other recessions in Macau, they said.
Guangdong’s decision last week to lift quarantine requirements for all entrants, even its own residents, was celebrated by gaming analysts as a positive step, even though group tour visas and the Individual Visit Scheme program both remain suspended. These two visa types account for the vast majority of cross-border travelers from the mainland.
Observers suggest that even a partial reopening of the border between Macau and the mainland could see a deluge of visitation to the SAR based on pent-up travel demand and few alternative destinations overseas.