Macau Casinos Likely to Keep Promotion Spending High Through Second Half, CBRE Analysis Finds

Macau Casinos Likely to Keep Promotion Spending High Through Second Half, CBRE Analysis Finds

Macau’s casino operators are expected to maintain elevated levels of promotional expenditure in the second half of the year as competition for patrons intensifies across the gaming hub, according to analysis from CBRE Group, Inc. reported by GGRAsia.

The findings suggest that the six licensed gaming concessionaires in the Chinese special administrative region will continue to deploy significant resources on comps, discounts, and marketing programs aimed at drawing visitors to their integrated resorts. Promotional spending has been a defining feature of Macau’s post-pandemic recovery, as operators work to rebuild visitation and gaming volumes in a market where consumer behavior has shifted since the removal of travel restrictions.

CBRE’s assessment points to sustained pressure on operator margins from these marketing costs, even as gross gaming revenue in the territory has continued to recover. The elevated promotional environment reflects the competitive dynamics among concession holders, each of which has committed to substantial non-gaming investment under the terms of their new licenses.

CBRE, headquartered in Dallas, is the world’s largest commercial real estate services and investment firm, with operations spanning advisory services, building operations, project management, and real estate investments across the United States, the United Kingdom, and international markets. The company’s research arm regularly covers hospitality and gaming real estate, including the casino resort sector in Asia.

Shares of CBRE closed at $147.16, up 3.63% from the previous close of $142.00, giving the company a market capitalization of roughly $43.7 billion.

For Macau’s gaming operators, the continuation of heavy promotional spending into the second half of the year underscores the balancing act they face between pursuing market share and protecting profitability. Analysts have noted that the pace of the premium mass-market segment’s recovery, along with the return of higher-spending visitors, will be key variables shaping how long operators need to sustain these incentive programs.

What to watch

• Monthly gross gaming revenue figures from Macau’s Gaming Inspection and Coordination Bureau
• Second-half earnings reports from the six Macau gaming concessionaires, including commentary on promotional and marketing costs
• Updates on visitation levels and premium mass-market play trends
• Further CBRE research on the Asia-Pacific hospitality and gaming property sector

Source: original release