Peninsula casinos aren’t going anywhere: report

Tuesday 25th of September 2018

While revenue from casinos in Cotai continue to outstrip their Peninsula counterparts, the latter will always be an attraction for clients “of a different taste” with their old-style venues, say experts.

Speaking to Macau News Agency, Ben Lee, managing partner at iGamix said that the two casino districts have attractions catered towards different clienteles.

“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,” said Lee.

Grant Govertsen, head of asia equity research, Macau at Union Gaming told MNA that it was unlikely that properties on the Peninsula will see “any revenue declines in any sort of material way.”

“The reality is that while the Macau Peninsula has seen its share of GGR decline relative to Cotai, it is experiencing growth in revenues,” said Govertsen.

He, however, noted that gaming revenues in Cotai are likely to make up for up to 70 percent of GGR over the next few years with customers looking for experiences “beyond the casino floor.”

This will eventually lead to changes on what is being offered at Peninsula casinos.

“As the Peninsula properties get older, remembering they were the first generation casinos, the operators will have to rejuvenate their aging properties,” added Lee.

Govertsen said that older properties may be torn down and rebuilt with more hotel rooms and amenities.