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Takeaway: Average table minimums continue to fall

Chart of the Day: An analysis of the monthly average minimum bet levels in Macau

  • Not surprisingly, average minimum bets continue to fall at the premium mass levels
  • What is surprising is that grind mass minimum bet levels are also falling at a similar rate. Grind mass shouldn’t be impacted as much by the corruption crackdown as much as VIP or premium mass.
  • Operators began lowering minimum bet levels in August – remember that July 2014 was the first month of mass revenue growth deceleration. See our 06/13/14 note “MACAU: HANDICAPPING MASS DECELERATION” which was predicated in part to the lapping of the big hike in table minimums beginning in July 2013.
  • While investor focus has rightly been on the poor performance of the VIP and premium mass segments, grind mass is also under significant pressure as the chart below indicates

MACAU PRICING PRESSURE - ab