Asian Gaming Sector Recovery: A Mixed Bag of Fortunes
A Bloomberg analysis contrasted the resurgence of various Asian gaming sectors and unveiled unexpected results at a G2E Asia presentation.
The Philippines displayed a robust comeback, with gaming income hitting 79% of 2019 figures by mid-2022 after suffering a slump during the health crisis. Singapore similarly exhibited a consistent recovery, achieving 68% of pre-pandemic figures in the initial half of 2022 and is projected to fully rebound by 2024.
Conversely, Macau’s resurgence has been more volatile. Although the gaming center witnessed its income climb to 30% of 2019 figures in 2021, this number plummeted to a mere 18% in the first six months of 2022. This decline is probably attributable to China’s sluggish economic expansion and its stringent pandemic regulations.
Although Phnom Penh, Cambodia’s capital, initially showed promising gambling figures in 2020, the industry experienced a significant decline in 2022. The contribution of gambling to the overall economy sharply dropped to a mere 13%, only demonstrating a partial resurgence to 27% by the middle of the year. This negative trend reflects the broader economic impact of the Covid-19 pandemic on the nation.
Shifting focus to other areas, Macau introduced a substantial 40% levy on high-stakes gambling income, potentially hindering its own recovery. Conversely, nations such as the Philippines, Singapore, and Cambodia have adopted an alternative strategy, implementing more adaptable and reduced tax rates for both recreational players and significant spenders in an effort to stimulate the industry’s revival.
