equipment suppliers are leaving the premises, much to the operators’ displeasure
In Macau, the consequences of the new gaming law are already being felt. While it will not come into effect until next year, operators are planning drastic reductions in the number of slot machines and gaming tables. As a result, gaming equipment suppliers once based in the Chinese Special Administrative Region are packing up and moving to warmer climes.
Casino gaming suppliers lose interest in Macau
According to Jay Chun, president of the Macau Gaming Equipment Manufacturers Association, at least four international gaming terminal suppliers would ready to leave the former Portuguese enclave. And others should follow in the wake!
Indeed, Jay Chun confided to the very serious media Bloomberg: ” There was a time when Macau’s gambling industry was bigger than any other, outperforming even Las Vegas. Before Covid-19 and the change in health policy, the Macau market had annual revenues of $36 billion. But now it’s clear that Macau has lost its luster to exponentially growing destinations such as Singapore and the Philippines. “.
One of the suppliers ready to desert the Macau peninsula completely is none other than Light & Wonder, which has its eyes set on the Philippines. The Japanese equipment manufacturer has already relocated 30% of its workforce to the Philippines and Singapore. In addition, Light & Wonder has redirected 50% of its inventory to neighboring countries due to supply problems in Macau.
New rules change the game, but maybe not for everyone…
As a reminder, in order to meet the new requirements decided by the Chinese executive, all new games ordered by casinos must meet very rigorous technical standards, known as “EMG 2.0”. By the end of next year, at least 40% of the slot machines installed in Macau’s casinos must be comply with the new rules. Casinos will have an additional year to achieve 100% compliance.
As an example, vendor Light & Wonder was the first vendor to receive the new accreditation when its new Carnival Cow™ slot machine was approved in May 2022. But that won’t stop the Japanese equipment maker from looking elsewhere for greener pastures…
From January 1, 2023, Macau will limit its total number of gaming tables to 6,000, and its number of slot machines to 12,000. As an example, in 2019, there were 17,000 slot machines and more than 6,700 gaming tables in Macau casinos. However, the Macau branch revenue reduction. is a real burden for their parent companies, which no longer see any prospect of growth in the former Portuguese colony.
However, not all gaming companies will leave Macau. Last month, for example, Melco Resorts and Entertainment said it was considering moving its headquarters from Hong Kong to Macau to appease its American parent company.