For 2017 the Macau market will continue to stabilize and grow, but the operators will have to work harder to get the players to come back. The future looks good with regards to the general mass player but the VIP’s will be careful in how, where and what they play.
The certainty of them coming and playing the same numbers as they did in the years previously can not be counted upon. My prediction is that more focus has to be given to the mass and premium mass players to make them feel they get value for their money. The junkets will have to work harder and the controls they will be facing will make it more challenging to fill their VIP rooms.
My prediction is that more focus has to be given to the mass and premium mass players to make them feel they get value for their money. The junkets will have to work harder and the controls they will be facing will make it more challenging to fill their VIP rooms.
From the suppliers point of view, more technology will be sold and the electronic table games will be sold in greater quantities. However, prices will remain stagnant and the operators will keep on demanding primarily popular products, creating higher risks as products will have to be tested live. The DICJ promised additional measures to streamline the process which is highly necessary to provide more variety and interesting products which today have not yet appeared in the casinos. HK traffic, once the bridge is open will demand more than what is on offer today.
The PAGCOR privatization process will be painful as many employees are bound to lose their jobs, since the buyers likely can’t count on their loyalty and willingness to work as is expected in the private sector. How this will be managed and how PAGOR will transfer the properties will be key to the development of the Philippine casino industry as a whole.
The additional potential impact will be on the online industry. How will PAGCOR’s involvement be handled? Will the online operators still be able to be First Cagayan-licensed and operate from Manila or will all operations in Manila be forced to be covered by its license? If so at what cost, as today’s proposed tax is very high. The handling of this will make or break the level of confidence with the present operators. If handled wrong most will leave the Philippines and create thousands of job losses.
Note from Harmen Brenninkmeijer, managing partner at Dynamic Partners.
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