The global gaming market has seen a distinct decline in revenue following the crackdown on corruption and money laundering by the Chinese government. Macau has been particularly affected, with gaming revenues expected to slump by a third this year — the lowest point since 2010. With Beijing now home to more billionaires than anywhere else in the world, Australia is looking to capitalise on this decline by securing a 10% cut of the $80billion Asia Pacific gaming market.
If they’re to be successful, casinos are going to need to invest in more than the gaming floor. Today’s consumers prefer to spend their time and money on food, fun and retail therapy. As the existing players strive to become integrated resorts, these additional amenities are critical to attracting a full house. Not only do they draw more visitors, they increase the length of stay as well as the potential for additional spending by family and larger groups. The success of this formula is evident in Las Vegas, where non-gaming revenue now exceeds gaming revenue (constituting approx. 60% of total revenue, a 20% increase since 2005). Australia is looking to follow suit, with a number of new mega-casinos being rolled out over the next five years.
SKYCITY Entertainment Group’s Adelaide Casino is one such example. “Not only have they upgraded their gaming facilities, but they now have the best contemporary bar and restaurants in Adelaide with Madame Hanoi and Sean’s Kitchen. I have no doubt that these projects have increased foot traffic at the complex and contributed to the rise of tourism across Adelaide more broadly” said Luke Steele, Schiavello Hotel and Gaming Specialist. The quality of these projects has been recognised by the Master Builders Association, where they received awards the last two years running.
These integrated resorts have to adapt to the changing face of tourism – discerning, bespoke, fast paced. While consumers continue to spend, they are more cognisant of where their dollar is going. The challenge is on now to see if the house wins its share against the larger Asian competitors.