China – “bottomless reservoir” of gambling demand?

    Published in: Latest IntelligenceIntegrated resort projects being planned for Japan and South Korea all cite the potential of the Chinese gamer as a justification for multi-billion dollar investments. But if you build them, will they really come? The question of the level of unmet demand in China warrants serious discussion. Matthew J. Landry*Discussions of the revenue potential for integrated resorts in Korea and Japan focus on domestic populations and the underserved northeastern China market. While most industry experts agree that unmet demand does exist in the region, some consider China to be a bottomless reservoir. This dangerous assumption is not likely to be adopted by financial markets, warranting an evaluation. Although not necessarily demand related, the recent decline in Macau’s VIP revenue supports the need for a calculated approach.Clearly there are several factors other than demand that will impact the ability of Korea and Japan to attract Chinese gamers. These...

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