Monday, August 08, 2022

Macau's mass-market Emerges as Sands shifts from junket-VIP


Macau's collapsing junket-driven VIP business is hastening the casino hub's transition into a leisure-oriented destination, akin to Las Vegas, said Bloomberg Intelligence.

In response to comments made by Robert Goldstein, president of Las Vegas Sands, in a 15Q2 Earnings Call, in which he said Macao is “very clearly,” a mass market, Bloomberg said Sands China has a competitive edge with over 9,000 hotel rooms, the largest convention venue and the most retail and restaurant outlets. 

Goldstein said: “Macau is no longer driven by junket GGR…. What is happening is a mass market is emerging. And again, mass markets demand lots of product: retail products, room product, diversity pricing, lots of tables, lots of spots, ETGs – that's who we are. That's our background. We built our products for that." 

Analysts Tim Craighead and Margaret Huang said nearly 90 percent of Sands China’s profits come from the non-gaming and mass market gaming segments.

“The other operators are also pursuing a similar mass-related strategy with integrated resorts under construction in Cotai.”

Sands China's Macau business supported parent Las Vegas Sands' better-than-expected 2Q Ebitda, even as total Ebitda fell 30 percent.

 

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