Daily Asia Gaming eBrief: Luxury business wanes in Macau, despite IVS push

Monday 9th of September 2024

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Good morning. Luxury may be falling out of fashion. At least in Macau, despite the expansion of the Individual Visit Scheme (IVS) and increased duty-free limits, luxury spending continues to decline, with retailers worried about how to now face a demographic increasingly focused on discounts and frugality. The slowing Chinese economy is not helping matters, forcing retailers to target foreign customers. Meanwhile, Wynn Resorts has been handed a historic fine by US authorities over unlicensed money transfers which facilitated liquidity for VIPs.

What you need to know

Luxury spending is dropping in Macau, despite the expansion of the Individual Visit Scheme, prompting businesses in Macau to adapt.
Wynn Resorts ordered to pay record fine over unlicensed money transfer business linked to overseas clients.

On the radar

The Star to sell Treasury Brisbane Casino building for $45.5M.
Five-day mandated closure of SkyCity Auckland casino commences.
Former Crown exec appointed as CEO of The Star Gold Coast.
Universal Entertainment completes early redemption of $760M notes.
75 Chinese POGO employees deported from the Philippines.
16 foreigners face charges in the Philippines following Cebu POGO raid.

AGB Intelligence

MACAU

Luxury retail declines as consumer demographics shift

Macau's former do-si-do of gaming and luxury retail has fallen out of step, as consumer desires within the world's largest gaming hub are shifting away from opulence to a more frugal and practical paradigm. Companies within the SAR are now forced to refocus their efforts, as the slowdown in China's economy weighs on spending, despite the increase in Individual Visit Scheme (IVS) source markets.

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