Casino equipment suppliers are abandoning Macau in favour for more vibrant markets such as Singapore and the Philippines, reports Bloomberg.
The cause is the damage done to the industry by China’s Covid-19 policy that has wreaked havoc among the big Macau operators.
Light & Wonder – until recently Scientific Games – has moved its expatriate staff to the Philippines, these days its top market in |Asia, where it is opening a new office.
The news medium reports that a major Japanese supplier – not named – is moving one-third of its staff and taking half of its inventory out of Macau.
An unnamed employee is quoted as saying that the Japanese company’s problems over supply chain issues were a factor, but it had seen its revenue drop by 90 per cent in Macau as casinos put their purchasing plans on to the back burner.
Bloomberg said that the Macau casinos would not buy new equipment until the current round of licence renewals is completed at the end of this year.
At one stage, Macau’s gambling market was six times larger than that of Las Vegas, with an annual revenue of $36bn.
Jay Chun, chairman of the Macau Gaming Equipment Manufacturers Association, is quoted as saying that he knew of at least four multi-national casino suppliers relocating manpower and resources overseas.