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Casino suppliers leave Macao to expand in Singapore & the Philippines

Author : Pankaj Singh | Published Date : 2022-09-07 

Casino suppliers leave Macao to expand in Singapore & the Philippines

Suppliers of casino equipment have reportedly planned to leave Macao for more favorable markets, highlighting the disruption caused by China's Covid-19-zero policy.

As demand in Macau declines, Light & Wonder, a major distributor of casino products, is moving its workforce to the Philippines and opening a new office there, which has emerged as its leading market in Asia. Employees of another Japanese manufacturer of casino equipment are also being relocated to Singapore and the Philippines.

As per sources, due to supply chain issues, the Japanese firm is shifting up to 30% of its workforce and has removed over half of its stock from Macau. The company's Macau revenue has decreased by roughly 90% as casinos postponed purchases due to industry slowdown.

Ken Jolly, the Asia managing director and vice-president of Light & Wonder, says without new revenues, the company is only earning a small amount of money from technical and maintenance support. This is because Macau's casinos are not purchasing any new equipment until they receive licenses to keep operating. at the end of the year.

After more than a decade of dominance as the world's leading casino venue, Macau lost that title to Las Vegas as the Covid-19 pandemic and China's travel restrictions stifled the customary influx of tourists.

Macau's gaming market, which is primarily dependent on mainland consumers, was six times larger than that of Las Vegas, with an annual income of US$36 billion before the pandemic.

Jay Chun, Macau Gaming Equipment Manufacturers Association's chairman, claimed to be aware of at least four international casino suppliers who were relocating their workforce and resources offshore. 

The trend might pick up speed after the government declared a cap of 12,000 gaming machines around the town for 2023 under a new casino regulation. In 2019, there were over 17,000 machines on the market.

Macau was already under pressure well before the pandemic hit, since Chinese President Xi Jinping was cracking down on high-rollers as part of a push against corruption, money laundering, and capital flight.

Source credit: https://www.straitstimes.com/business/companies-markets/casino-suppliers-quit-macau-for-resurgent-singapore-philippines

About Author

Pankaj Singh . .

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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