China Renaissance’s Lee Is Pessimistic on Macau Gaming Sector’s Outlook in 2H

The transcript discusses the current state of the Macau gaming industry, highlighting the challenges faced by the VIP segment due to economic issues and increased competition. It also examines the impact of tourist arrivals driven by new infrastructure, which boosts the mass market but does not compensate for the decline in high rollers. Policy changes and economic conditions are key factors affecting the industry's recovery, with potential improvements expected in the future.

What was a significant challenge faced by the high-end gaming market in Macau?

• Increased competition and macroeconomic issues

• High taxation rates

• Lack of tourist attractions

• Limited gaming licenses

What is a potential factor that might affect the recovery of the VIP segment in Macau?

• Introduction of new gaming technologies

• Upcoming visit of the Chinese President

• Increase in hotel room supply

• Expansion of gaming licenses

How has the new bridge linking Zhuhai to Macau and Hong Kong impacted the gaming industry?

• It has reduced the number of tourists

• It has led to a decrease in gambling revenue

• It has driven up mass market traffic

• It has significantly increased high roller visits

What is a major constraint for the Macau gaming industry?

• Limited hotel room supply

• Decreased tourist arrivals

• High taxation rates

• Lack of gaming licenses

How is the mass market supporting the Macau gaming industry?

• By reducing hotel room prices

• By increasing the number of gaming licenses

• By compensating for the decline in VIP revenue

• By attracting more high rollers