The UK’s Department for Culture, Media and Sport (DCMS) has discussed plans to modernize land-based gambling, including the arcade and amusement sector, as part of its commitment to building a sustainable future for the industry. 

DCMS Highlights Economic Contributions of Arcade and Amusement Sector 

Addressing attendees at the recently-concluded Bacta Annual Convention 2023, DCMS Secretary Stuart Andrew recognized the major economic contributions of arcade and amusement operators throughout the UK which generate an economic turnover of £1.6 billion and employ thousands of people in the country. 

The sector continues to play a crucial role in the UK’s economic development despite the huge commercial challenges it’s facing, and the government wants to make sure the industry can operate sustainably now and into the future. 

The Gambling Act Review White Paper sets out a series of proposals for land-based gambling venues, including modernizing measures which Andrew said will help to support the move towards a brighter future for the sector. The proposals include a reform of the current 80/20 rule and the implementation of cashless payments on gaming machines. 

Ensuring a Sustainable Future for Land-Based Operators

The DCMS has initiated a consultation process on these measures, obtaining valuable insight from key stakeholders, including Bacta. Andrew told delegates at the conference that deciding on the right policy direction would take time but assured them that the White Paper proposals are all aimed at securing a sustainable future for the industry and enhancing protections for consumers.

UK gambling is currently the smallest sector overseen by the Department for Culture, Media and Sport (DCMS), with 1,000 gambling businesses operating throughout the country. 

However, the industry continues to thrive, with nearly a quarter of businesses generating more than £1 million in revenues each year. These figures are contained in the latest economic estimates report submitted by the DCMS to the National Office of Statistics (ONS).

UK Gambling Categorized as Standalone Sector

According to the report, as of March 2022, gambling businesses accounted for just 0.2% of all businesses supervised by the DCMS, but unlike many of the other sectors, the gambling industry had been categorized as an independent sector with no overlap with other sub-sectors. 

Of the 1,000 gambling businesses operating in the UK, 705 were categorized as micro-sized (0-9 employees), with 35 belonging to the large business category with over 250 employees. The rest were categorized as small (10-49 employees) and medium (40-249 employees).

Most6 Firms Generate Over £1M Annual Revenue

In terms of revenue, most of the firms generate between £100,000 and £250,000 each year, while 235 generate more than £1 million. 

Most UK gambling businesses are based in London (17%), with the rest located in the Midlands (12%), the North West (11%), Scotland (10%), and Northern Ireland (4.2%).

Macau casino operator Wynn Macau Ltd continues to enjoy a strong recovery, as latest figures show the company’s mass drop in October 2023 was up 24 percent from the same month in 2019. 

Wynn Macau’s Strong Recovery Extending into 4Q

October’s results were boosted by the autumn Golden Week, a holiday in mainland China during which the country sees a huge surge in cross-border trips. This is considered among the busiest periods for Macau operators as they cater to an influx of Chinese visitors. 

During Wynn Resorts Ltd’s recent earnings call, Group CEO Craig Billings revealed that October 2023’s mass drop went 24 percent above October 2019. Hotel occupancy was also at 98 percent of 2019’s figures, accompanied by healthy tenant retail sales. 

Adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) per day for October also went beyond October 2019, though market share was lower, Billings added.

This follows strong results posted by the operator during the third quarter, with multiple key areas of the business trending well above 2019 levels, according to Billings. Wynn Macau Ltd operates two properties in the region – Wynn Macau and Wynn Palace Cotai.

Update on Wynn Al Marjan

Billings also provided a few updates on their integrated resort project in the United Arab Emirates (UAE), saying the hotel tower foundation is nearly complete. Wynn Al Marjan is located in Ras Al Khaimah and is slated to open in 2027.

The United Arab Emirates (UAE) could offer a casino license to each of its seven emirates, according to a report from Bloomberg. The latest development follows the establishment of UAE’s future gambling regulator, the General Commercial Gaming Regulatory Authority (GCGRA) in September.

UAE Could Surpass Singapore in Gaming Revenue

UAE could be home to a gaming market potentially bigger than Singapore, with the country projected to generate up to US$6.6 billion in annual gaming revenue, Bloomberg reported. 

The granting of casino licenses will also allow all seven emirates to tap into the lucrative gaming market and boost their respective tourism industries.

However, it’s unclear at the moment whether all emirates would be open to the idea. So far, it’s only Ras Al Khaimah that has given the clearest indication yet of launching a casino, with Wynn Resorts set to develop a US$3.9 billion integrated resort with a gaming venue on Al Marjan Island which could open in 2027. 

Casino Not A Priority for Dubai

Citing sources, Bloomberg reported that Dubai has put casino plans on the back burner. Legalized gambling is currently not a priority for senior government officials as the city’s tourism is doing well, according to individuals with knowledge of the matter.

The popular Grand Lisboa casino and hotel in downtown Macau is set to go through a massive renovation in 2024. The flagship property of SJM Holdings opened up to the public back in 2007 and is now in need of an upgrade in order to compete with some of the more modern casinos on the Cotai strip.

Renovation To Commence Only In 2024

Daisy Ho Chiu Fung, chairman of SJM Holdings spoke to the media and confirmed that the renovation process for the Grand Lisboa casino and hotel will commence only in 2024. Daisy Ho said that the renovation process is currently in a planning stage and outlined some of the changes that the revamp will include.

The revamp will now make any changes in terms of addition extra hotel rooms as the current 431 hotel rooms and suites will be maintained. The revamp will include the opening of new restaurants, refurbishing hotel rooms and opening out new shops in the property. 

Grand Lisboa casino and hotel continues to be popular with patrons and had over 87 percent hotel room occupation rate during the first half of 2024.