Macau peninsula casinos are here to stay, despite Cotai growth

Casinos in Cotai have been the biggest winners in Macau lately, taking a huge chunk of the profits from those casinos located on the peninsula. However, there’s no need to be concerned that the peninsula-based casinos could be forced out, as they still attract a different clientele that are more comfortable with the old-style venues.

Ben Lee, iGaming’s managing partner, told the Macau News Agency that the two districts attract completely different types of gamblers. He explained, “The Peninsula attracts the hardcore, old fashion, value-conscious gamblers who prefer the proximity to the range of dining, shopping and entertainment amenities. Cotai attracts more status conscious and family oriented clients.”

Union Gaming’s Macau expert, Grant Govertsen, told the media outlet that the solid money is on the peninsula venues retaining their share of the market. He said that the casinos will more than likely not see “any revenue declines in any sort of material way.” Govertsen added, “The reality is that while the Macau Peninsula has seen its share of GGR decline relative to Cotai, it is experiencing growth in revenues.”

The Union Gaming analyst pointed out that Cotai will still be the stronger segment. He expects gaming revenues in Cotai to likely account for as much as 70% of the overall gross gaming revenue (GGR) in Macau for the next several years as many of the visitors look for new experiences “beyond the casino floor.”