Macau's VIP segment is in decline and the mass market is booming
According to the government, the mass market for Macau games is on the rise, while revenues in the VIP segment in the third quarter of 2018 have fallen.
On Tuesday, the Macau Gambling Inspection and Coordination Office (DICJ) published official statistics for three months, which witnessed a total income of $9.2 billion from all activities, which is 10.2% higher than it was received in the same period last year.
Income of the VIP-baccarat amounted to almost 40.1 billion pataca in the third quarter of 2018, which is 3.6% less compared to the same period last year. It is significant that the income from baccarat in the mass market grew by 21.5%. In the third quarter of 2017, the picture was the opposite - revenues from VIP baccarat increased by 35%, and the mass market only by 7%.
Signs of a slowdown in growth in the second quarter have already been observed in the Macao VIP services market, while the share of the VIP segment in total revenue declined by 1.37 points - to 54.3% - in the third quarter.
Bernstein analysts predict that the total income from gambling per month will fluctuate between 27–29 billion pataca, which means an annualized improvement of 4–7%.
The Macau Sports Lottery earned less in the third quarter than during the 2018 World Cup.
The third quarter was the first to show zero revenue from the Macau's race segment. The Canidrome track was closed this summer. Disputes over the fate of approximately 600 dogs left homeless as a result of the closure of the institution continue to rage.
Suggested Reading - UKGC fined Rank Group for €570 thousand