‘Largest whale’ since 2017: Citi bullish on Macau’s premium gaming

Sankunni K November 18, 2024

SiGMA news

Macau’s casino industry has recorded a robust resurgence in premium gaming, with November 2024 marking a milestone in observed high-stakes wagering, according to Citigroup’s latest monthly survey of the sector. Analysts George Choi and Timothy Chau highlighted a significant uptick in player activity, the deployment of advanced “smart” gaming tables, and the introduction of innovative side bets as key drivers behind the growth.

Record high roller bets in a “slow month”

In a surprising development for what is traditionally a quieter period, the survey reported a staggering HKD2.2 million (US$282,607) wagered by a single high-roller, dubbed the “largest whale” Citigroup has observed since initiating its reviews in 2017, according to a by GGR Asia. This player accounted for 18 percent of the HKD12.2 million total bets recorded across surveyed tables, making a HKD200,000 wager on the “Lucky 7” side bet alone.

The institution defines “whales” as players that have a bet size of HKD100,000 or more.

The record-setting wager occurred at the Signature Club in the Epic Tower of Studio City, a property majority-owned by Melco Resorts & Entertainment Ltd. Citigroup analysts remarked on Melco’s improving market position, noting a sizeable gain in the premium mass gaming segment, which had previously shown signs of erosion.

Surge in premium mass and whale activity in Macau

The survey revealed a year-on-year increase of 29 percent in observed total wagers, reflecting a rise in both the number and quality of players. Premium mass players climbed 21 percent to 514, while the average wager per player increased 7 percent to HKD23,706. The number of high stakes “whales” rose to 21 from 18 in November 2023, with their average wager surging by 73 percent to HKD268,381.

This growth underscores the sustained recovery of Macau’s gaming industry, buoyed by returning high-value customers and innovative casino offerings designed to maximise engagement.

Smart tables transforming the gaming floor

The adoption of smart gaming tables has become a game-changer for Macau’s casinos, enabling faster gameplay, detailed bet-by-bet data collection, and new marketing strategies. These advanced tables, equipped with automated features to streamline operations, are now present in key gaming areas such as:

The Venetian Macao and Plaza (Sands China Ltd.)

Studio City (Melco Resorts & Entertainment Ltd.)

Galaxy Macau’s Horizon Room (Galaxy Entertainment Group Ltd.)

Wynn Palace and Wynn Encore (Wynn Macau Ltd.)

Operators like Wynn Resorts and Galaxy Entertainment have announced plans to complete smart table rollouts across all properties by Chinese New Year in late January 2025. Wynn Resorts CEO Craig Billings stressed the transformative potential of these tables, stating that the comprehensive data they provide will enable innovative marketing approaches and enhanced customer experiences.

Rise of side bets

Citigroup’s November survey also highlighted the growing popularity of side bets, which offer players additional betting opportunities and boost casinos’ hold rates. Notable examples include Sands China Ltd.’s introduction of side bets based on “6s” and “7s” at The Venetian Macao.

“Operators are constantly looking for ways to organically grow GGR,” the analysts noted. These initiatives are seen as pivotal in sustaining revenue growth beyond traditional metrics like player numbers and spending.

Market outlook

With demand for premium gaming solid and innovations like smart tables and side bets driving growth, Macau’s gaming sector appears poised for a strong finish to 2024. The resurgence of high-stakes players, coupled with technological and operational advancements, suggests that the industry is adapting effectively to changing market dynamics.

As the Lunar New Year approaches, operators are betting on these strategies to maintain momentum, further solidifying Macau’s position as a global gaming hub.