Advertisement

Asia, Middle East gamblers to cash in on wave of legalisation in Thailand, Japan, UAE, pressuring Macau

  • Establishment of new gaming centres would pose a major challenge for Macau, the world’s largest gambling hub which has gaming revenue six times that of Las Vegas
  • Time is still on Macau’s side, as it’ll likely be years before the first dice are rolled elsewhere

Reading Time:4 minutes
Why you can trust SCMP
Some of the biggest tourism spots in Asia and the Middle East are moving toward building or allowing their first casinos. Photo: Shutterstock
In a sea change for the traditionally conservative region, some of the biggest tourism spots in Asia and the Middle East are moving toward building or allowing their first casinos, raising competitive pressure on existing hubs like Macau.
Advertisement
MGM Resorts International and Wynn Resorts Ltd. have announced plans for billion-dollar resorts in Japan – which has legalised casinos – and the United Arab Emirates, where talks about allowing gambling are gaining momentum. In Thailand, politicians are mulling a large gaming complex to rival Singapore’s famous Marina Bay Sands, pending government approval of such facilities.

The establishment of new centres would pose a major challenge for Macau, the world’s largest gambling hub – which once had regional demand all to itself – to the tune of gaming revenue six times that of the Las Vegas Strip.

That gaming customer living in Shanghai will in the future have a choice to jump on a plane and go to Macau, Singapore, Osaka or Bangkok
Jeremy Walker, gaming industry consultant

The city’s era of explosive growth has come to an end in recent years as Beijing cracks down on high rollers and tightens scrutiny of casinos’ activities in a bid to curb capital flight. Now it faces the daunting task of pivoting to mass entertainment options to lure tourists just as other destinations get closer to offering baccarat and blackjack.

The countries are targeting Chinese travellers, who comprise the bulk of Macau’s visitors. Mainland Chinese were the largest group of tourists to both Thailand and Japan before the pandemic, accounting for about one-third of foreign arrivals in 2019. The UAE is also increasingly eyeing the world’s second-largest economy as a key source of tourism.

“The loyalty that perhaps Macau had in the past, because it was the best show in the region – the best option – won’t necessarily be the case going forward,” said Jeremy Walker, a gaming industry consultant and former senior casino executive.

“That gaming customer living in Shanghai will in the future have a choice to jump on a plane and go to Macau, Singapore, Osaka or Bangkok. They’re going to go where they feel they’ll get the best experience.”

Big gamble

Advertisement