Casino suppliers quit zero-Covid Macau for Singapore, the Philippines: ‘Macau has already lost its shine’
- Singapore’s gaming revenue is back up to 70 per cent of pre-pandemic levels. But in Macau last month, it was less than one-tenth
- At least four multinational casino suppliers are relocating, according to an industry insider, who said ‘the Macau of old is a thing of the past’
The Japanese company is moving as many as 30 per cent of its employees and has taken more than half of its inventory out of Macau due to supply-chain challenges, a person familiar with the matter said, asking not to be identified discussing information that wasn’t public. The person also asked for the company not to be named. It has seen revenue plunge about 90 per cent in Macau as casinos shelved purchasing plans amid a prolonged industry slump.
“The Philippine market has become a dominant market in Asia, and it makes sense for us to put more staff there,” Jolly said.
After well over a decade as the world’s pre-eminent casino centre, Macau ceded that crown back to Las Vegas as Covid lockdowns and China’s travel bans choked off the usual flood of people coming in by air, sea and land. Before the pandemic, Macau’s gambling market – heavily reliant on mainland customers – was six times bigger than Vegas’s, with annual revenue of US$36 billion.
Macau Gaming Equipment Manufacturers Association Chairman Jay Chun said he knew of at least four multinational casino suppliers relocating manpower and resources overseas. The trend could accelerate after the government announced a cap of 12,000 gaming machines across the city for 2023 under a new casino law. There were already 17,000 machines in the market in 2019.