Macau, often referred to as the gaming capital of the world, has been experiencing notable shifts in the spending behaviors of its biggest high rollers, known as “whales.” Recent insights from Citigroup indicate a significant acceleration in spending patterns throughout 2024, suggesting resilience among affluent players despite broader economic challenges in China.
Overview of Spending Trends
According to Citigroup’s monthly premium mass survey, 2024 has already shown promising trends in whale activity. Analyst George Choi reported that as of September, 228 whales had wagered a staggering total of HK$43.3 million. This marks an increase from the previous year, where 224 whales wagered HK$39.7 million throughout the entirety of 2023. The acceleration in spending indicates a robust willingness among these high rollers to engage with the Macau gaming market.
Average Session Wager
The average session wager for these high rollers has also seen a remarkable rise. Currently standing at HK$655,000, this figure represents a 43% increase compared to the previous year. Furthermore, in the last five months alone, the average wager has risen to HK$728,000, underscoring a clear upward trend in spending behavior. These statistics suggest that the wealthy clientele in Macau remains undeterred by external economic pressures, continuing to spend lavishly at the gaming tables.
Insights into Player Demographics
Choi’s review indicates a broader trend beyond just the high rollers. The total number of premium mass players surveyed in September 2024 reached 613, which is a remarkable 42% increase compared to the same month last year. This resurgence of casual players is noteworthy as it plays a significant role in driving overall wagering volume, despite diluting the average wager per player by approximately 5% year-on-year.
Quality of Premium Mass Players
Despite the influx of casual players, the overall quality of premium mass players remains robust. Choi emphasized that affluent players are still able and willing to spend in Macau, which is a positive indicator for the region’s gaming industry. The willingness of these players to return, even amid economic uncertainties, bodes well for the sustainability of Macau’s gaming revenue.
Whale Count and Notable Bets
Citi’s whale watch highlighted that September saw 21 whales actively participating in Macau’s premium mass gaming rooms, a four-player increase from the same period last year. One standout player placed a bet of HK$640,000 at Galaxy’s StarWorld Horizon room, while several other whales were observed wagering between HK$100,000 to HK$250,000 per hand at Galaxy Macau’s Horizon Room. This activity indicates a healthy level of engagement from high rollers.
Performance by Casino
Among the various casinos, Sands China emerged as the top performer in September, accounting for a 26% share of the total wagers observed. This marks an increase from a 22% share in August, reflecting a strong performance in the competitive landscape. Notably, The Londoner casino showcased solid gaming volumes, despite ongoing renovation works affecting part of the property.
Rebranding Efforts by Melco
In a strategic move to attract more players, Melco has initiated a rebranding program focused on its premium mass products. The recent survey indicates that Melco captured a 17% share of the total wagers observed in September, a significant improvement over the average 13.5% share seen over the previous eight months combined. This suggests that the rebranding efforts are starting to yield positive results, attracting both new and returning players.
As we progress further into 2024, the trends emerging from Citigroup’s review suggest that Macau’s high roller market is not only recovering but thriving. The increase in both high roller spending and the return of casual players indicates a revitalization of interest in Macau’s gaming offerings. Despite the challenges posed by the economic landscape in China, the willingness of players to engage with the gaming industry remains strong.
The data presents a compelling narrative about the resilience of Macau’s gaming sector. With strategic initiatives such as rebranding and a focus on enhancing the player experience, the future appears bright for the gaming capital of the world. Stakeholders in the industry would do well to monitor these trends closely, as they may provide valuable insights into the evolving dynamics of player behavior and spending patterns in the months and years to come.