Fitch flags looming casino ‘glut’ in Asia-Pacific, amid arms race catering for wealthy Chinese gamblers
- Fitch Ratings highlights pitfalls of gaming industry overexpansion
- China’s slowing economy may finally hit the multi-billion dollar industry
Casino operators in Asia-Pacific banking on Chinese gamblers may find themselves in trouble in the years to come, amid potential oversaturation of the premium market, according to a recent report by Fitch Ratings.
The ratings agency cited the huge investments in gaming operations in Asia-Pacific that cater to wealthy Chinese consumers combined with the economic slowdown on the mainland, which they say has hurt Chinese demand for gaming activities.
“Billions of dollars were invested in the last decade to build casinos that cater to wealthy Chinese consumers,” Fitch said in the report released on Monday. “The premium segment has already plateaued in markets such as Singapore and Australia but investment is continuing across the region, even as China’s economy goes through a structural slowdown.”
In the United States, a number of casino operators faced bankruptcy in the 2010s. Media reports at the time cautioned of oversupply as individual states welcomed new entrants to enhance tax revenue from the gambling industry.
A similar story may be emerging in the Asia-Pacific, as casino operators are preparing to open or expand integrated resorts in Japan, Australia, Russia, Vietnam and even the Marianas Islands