Fitch: Japan a threat to Korea and Russia, but not Macau

Financial analyst firm Fitch Ratings has predicted Japan’s future casino industry, which could be worth up to $9bn a year, is unlikely to have a detrimental effect on the Macau market.

However, the much anticipated establishment of up to five integrated resorts in Hokkaido, Osaka, Wakayama, and Nagasaki will reportedly cause problems for Japan’s more immediate neigh- bours.

“Japan’s integrated resorts will have a more material negative impact on casinos in Korea and Vladivostok,” said the report. “Expansion of APAC gaming out- side Macau will not have a material negative impact on Macau but might be a mild headwind for Macau’s gaming growth.”

Despite Macau’s gross gaming revenues for January jumping 36.4 percent on the period 2017 to reach $3.2bn, the highest year- on-year growth for four years, Fitch Ratings forecast the move toward a mass market could slow the region’s growth to 11 percent in 2018.

“Mass as a whole will comprise nearly half of total GGR,” said the firm.

“Up from roughly a third during the market’s prior peak.”

However, Fitch concluded that managed effectively, the market alteration could benefit Macau, adding “the mass segment is more stable and remains underpenetrated in the Asia-Pacific region”.