Your Daily Asia Gaming eBrief: How is Covid denting China consumer confidence

Good Morning. The spending power of the Chinese consumer has been a key driver of the global luxury goods sectors, the tourism industry and of course Macau’s casino revenue. While consumer confidence and spending rebounded remarkably fast after the first wave of Covid lockdowns on the Mainland, the picture isn’t so clear this time around, with the impact on discretionary spending expected to linger for longer. Even in the resilient luxury end of the market, growth is expected to slow significantly from the past few years, with some trends emerging in the factors driving growth.

What you need to know

• Macau operators net debt could reach $25 billion by the end of this year if China’s strict zero-Covid policies remain in place, but most should survive 2022: MS
• Imperial Pacific International has won another reprieve against efforts by Saipan’s Casino Control Commission to revoke its license postponed again. 
• The Victorian government has proposed new legislation that will further enhance the compliance and enforcement powers of its gaming regulator as part of its oversight of Crown Resorts.

On the radar

• SJM Holdings to guarantee worker jobs in satellite casinos.
• China immigration official advises citizens not to leave the country.

AGB Intelligence

DEEP DIVE

China consumer feeling the pinch from zero-Covid

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