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Casino Suppliers Are Abandoning Macau in Favor of Singapore
Macau is one of the biggest and most well-regarded tourist destinations in Asia, and more broadly, the world. Considered by many to be the gambling capital of the world, Macau, for a long time now, has seen more money spent in casinos than even the sin city itself, Las Vegas. However, things might be changing for the Chinese city very soon.
Recently, casino supplier companies have begun to cut their ties with the Macau casinos, and have instead started doing business with the resurging Singaporean and Philippine gambling industry. The resurging casino business in these countries might have already proven a lot more profitable than the long-standing Macau business.
Why is This Happening?
The reason for this decision seems to come as a consequence of the Chinese government’s zero-COVID policy. Due to this policy, lockdowns have been implemented all over China, impacting the personal and business lives of many people, including those working in the Macau casinos. This has led to the dwindling attendance of both tourists and locals at the famous and fabulous Macau gambling establishments.
With the famous gambling hub veining demand for casino supplies, supplier companies are abandoning the city altogether. Instead, they are looking toward budding businesses, such as the ones in Singapore and the Philippines. Already, two companies, including Light & Wonder Inc. have moved their business out of the city.
The spokesperson for a Japanese company that will remain anonymous claimed that they are moving a good chunk of their businesses to newer markets, namely Singapore and the Philippines. The reason he gave included a 90% drop in revenue.
The Veining of Macau
For over a decade now, Macau held the reins as the world’s biggest gambling destination. However, with the huge cutbacks forced on the city by the zero-COVID policy, Macau has now returned the title to Las Vegas. Once more, America’s Sin City stands atop of the world of gambling as the pre-eminent gambling destination.
Macau’s gambling industry is heavily reliant on the revenue made from mainland customers and tourists from Asia and the World. Before the pandemic hit, the city’s annual revenue generated from gambling and tourism dwarfed that of Las Vegas by a factor of six. The city made close to about $36 billion a year.
In the past couple of years, this number has veined, and Las Vegas once more stands atop the mountain as the most popular gambling destination in the world.
