Macau’s casino operators are increasingly targeting premium-mass customers as they shift focus from the traditional base-mass market, according to a new report from Jefferies Equity Research.
Jefferies analyst David Katz said all major gaming companies in Macau are emphasizing the premium-mass segment, which caters to affluent gamblers who do not require the same incentives as VIP players. The shift raises concerns about accessibility for base-mass gamblers as hotel and travel costs rise.
“Are they being priced out?” Katz questioned, noting that while casinos are deploying various strategies—including free dining and high-profile events like NBA China—higher hotel rates remain an open issue.
The report highlights several major operators embracing the premium-mass transition:
• SJM Holdings is repositioning its flagship Grand Lisboa casino.
• Wynn Resorts continues to focus on high-end clientele.
• Sands China and Galaxy Entertainment are adding new capacity tailored to premium-mass guests.
Jefferies analysts described post-Chinese New Year visitation trends as “solid” and supportive of March gaming volumes, though performance remains “choppy to modestly higher.”
Additionally, Macau’s promotional environment remains stable, a positive factor for casino operators compared to 2024. Longer visitor stays are also helping to stabilize gaming revenue.
Galaxy Entertainment is developing its Andaz megaresort, which will feature a 715-room hotel, 40,000 square meters of meeting space, and a 16,000-seat arena designed to attract events and conventions. The company is also expanding its electronic table games, which are gaining popularity among younger players.
Sands China is in the process of converting 4,000 Londoner rooms into 2,400 suites, with completion expected by May 25. Despite the reduction in room count, Katz believes that “the revenue opportunity from suites should more than offset the lower number of rooms.”
MGM Resorts continues its shift toward high-end accommodations by converting 60 smaller rooms into suites at MGM Cotai and investing $28 million in luxury villas. The company also noted increased poker demand, which has contributed to property hold stability.
Wynn Resorts has reported strong post-Chinese New Year momentum, with longer guest stays and higher energy levels at its properties. While management still believes Macau is “under-roomed,” they remain encouraged by growing foot traffic.
• Mass-market gaming revenue is trending down 8-10%, while VIP win is averaging 3% of total market revenue.
• Daily gaming revenue for the week ending March 16 fell 3% to $77.6 million.
• For March, total gaming revenue is projected between $2.3 billion and $2.5 billion.
• Katz expects Macau’s gaming industry to outperform U.S. markets, projecting mid-single-digit growth for 2025.
Jefferies analysts remain most bullish on Wynn Resorts, citing its strong growth potential both in and outside Macau. Sands China is also a preferred pick, though the report advises patience as The Londoner’s relaunch progresses.
Galaxy Entertainment received praise for expanding premium-mass offerings and leveraging special events like concerts to drive revenue. Meanwhile, MGM Resorts is executing well, with a strong focus on margins rather than market share.
Original article: https://www.yogonet.com/international/news/2025/03/20/98725-macau-casinos-shift-focus-to-premiummass-market-according-to-new-report
