Macau’s five-year plan seems to be generally favorable and realistic with respect to the government’s long-term goals for the gaming industry, according to Union Gaming.
The draft plan was released by the Macau government on Tuesday in both Chinese and Portuguese.
Though little space was devoted to the gaming industry, said Union Gaming, what was written was positive for the industry, and the brokerage said the gaming interim review will likely go into more detail as to Macau’s plans for the gaming industry.
With respect to the gaming industry’s place in the five-year plan, one of the goals of the plan is to increase the non-gaming revenue of resorts from 6.6 percent in 2014 to 9 percent by 2020, said Union Gaming.
“This, in our view, is achievable and recognizes that the transition to a more-diversified resort economy will take time.”
Table cap was also mentioned, with a plan to deviate from the current 3 percent annual growth limit.
“Based on current demand trends, sticking to the table cap should not impair the industry.”
The 5-year plan also mentioned the upcoming interim report, which will address changes to to the regulatory environment and associated laws, particularly in the VIP segment.