WEEKFRIDAY 05 MAR 09 2021 Q4 ROUND-UP: FLUTTER

Sponsored by ENTERTAINMENT, SCIENTIFIC GAMES, IGT, DRAFTKINGS WEEKFRIDAY 05 MAR 09 2021 Q4 ROUND-UP: FLUTTER ENTERTAINMENT, Sponsored by SCIENTIFIC GAMES, IGT, DRAFTKINGS

THIS WEEK

• Jim Murren forms second SPAC • CEO Therese Hillman leaves NetEnt • Entain ups bid to acquire Enlabs • 888 to Playtech: Brian

Mattingley switch Q4 reports from Flutter Entertainment, Scientific Games, DraftKings and International Games Technology (IGT) have highlighted the benefits of operational diversity, GUEST COLUMNIST: and the continued importance of online verticals in the modern climate. • Michael Zhu, FLUTTER ENTERTAINMENT The Innovation Group Flutter Entertainment finished 2020 strong, with pro-forma FY revenue up 27% year-on-year following its successful acquisition of The Stars Group. A growing player base and the return of sports throughout 2020 grew company revenues by 37% in Q4, the largest YOY quarterly increase of the year. Flutter’s US Sponsored by THIS WEEK IN

and PPB Online operations saw rises of 101% and 36% respectively, whilst PPB NUMBERS Retail closed 42% down on the same period in 2019. The Group recorded 7.6 million average monthly players in Q4, a 32% YOY increase that brought its FY total to just over 6.3 million, a growth of 19%. 15 Flutter’s online verticals accounted for 96% of total revenue in the year, with The amount of consecutive a condensed sports fixture calendar in Q4 helping the group post a pro forma English Premier League wins total of $5bn, a 34% increase. recorded by Manchester City after its 4-1 win against Wolverhampton Wanderers, SCIENTIFIC GAMES prompting operator Bovada Scientific Games saw Q4 revenues of $762m, a 9% climb from the previous to pay out early on the quarter, but a 12% drop year-on-year. club to win the title The company’s gaming operations continued to be heavily impacted by the Covid-19 pandemic, recording a 36% drop in YOY revenue to $268m, while its SciPlay vertical saw a 30% increase, earning $147m in the period. Elsewhere digital revenue reached $73m and lottery $256m respectively. 3 March Net loss for the period to 31 December 2020 stood at $84m, a 47% decrease on 2019’s figure of $37m, bringing Scientific Games’ FY revenue total to $2.72bn, The date from which down from $3.4bn the year prior. visitors to casinos in were no longer “The strong execution coupled with the diversity of our business enabled required to show a positive cash flow,” said CEO and president of Scientific Games Barry Cottle. negative Covid-19 test “The executive team and our board are working purposefully to transform when entering our company, capitalise on the evolving industry trends and deliver outsized returns to our shareholders.”

DRAFTKINGS The number of groups DraftKings reported revenue of $322m for the three months to December seeking a licence to 31 2020, a 146% increase on the $131m recorded in the same period in 2019. operate an Integrated Boosted by a favourable sports calendar and the continued opening up Resort in Nagasaki, of the US online gaming market, DraftKings’ monthly unique players Japan, who have had their proposals pass increased 44% compared to the fourth quarter of 2019. the latest application On average, 1.5 million unique customers engaged with the platform per phase; with the region’s month during the period. prefectural government On the back of this strong performance, the operator has increased its 2021 to create a nal revenue guidance from $750m-$850m to $900m-$1bn. The new projections shortlist of three equate to YOY growth of 40%-55%, as opposed to the 19% increase stated in the company’s midpoint guidance. Jason Robins, DraftKings’ co-founder, CEO and chairman of the board commented: “We are raising our revenue outlook for 2021 due to our expectation for continued $30m growth, the outperformance of our core business and newly launched states that Esports Entertainment were not included in our previous guidance.” Group completed the acquisition of the IGT business assets of Lucky IGT saw total Q4 revenue drop from $1.04bn in 2019 to $885m, as the Dino Gaming Limited challenging operational climate caused by Covid-19 continued to adversely through its Malta gaming licensed subsidiary, for the impact trading. aforementioned amount The supplier’s global gaming revenue for the period stood at $255m, a 46% YOY decrease despite positive performances from its lottery and digital verticals. The former recorded a quarterly revenue increase of 11%, reaching $630m, while the latter rose almost 55% YOY. 9% CEO Marco Sala told investors: “The solid results we achieved for this pandemic-impacted year have given us momentum into 2021. They are The drop in month-on- month gross gaming a result of the vision, agility, and discipline of the IGT team as well as the revenue (GGR) seen in distinct advantages of our diverse portfolio. Macau for February; “We also made important strategic progress. The company undertook a down to MOP7.31bn comprehensive reorganisation, to sharpen our focus on our core competencies ($914.5m), which was and drive structural operational efficiencies. a 136% year-on-year increase EX-MGM RESORTS CEO JIM MURREN FORMS SECOND SPAC; $22.1m WILL TARGET SPORTS BETTING The amount – JPY2.35bn Former MGM Resorts International owner Ted Leonsis, who also owns the – Pixel Companyz Co Ltd CEO Jim Murren has filed registration Washington Wizards and Capitals along reported in sales for for a second SPAC that would target with Fenway Sports (Red Sox) CEO Sam full-year 2020, which represented a year-on- entertainment, casino gaming, sports Kennedy. Curtis Polk, vice chairman of year decline of 7% betting and online gaming. Hornets Sports & Entertainment and Murren and partners filed a an advisor to Charlotte Hornets owner registration statement with the SEC Michael Jordan, will serve as an advisor. under Acies Acquisition Corp. II, a Other notable gaming SPAC deals special purpose acquisition company include DraftKings’ merger with (SPAC), or what is commonly referred Diamond Eagle Acquisition Group 13% to as a blankcheck company. and Tilman Fertitta-backed Landcadia Increase in sports “We are focused on identifying a Holdings II’s acquisition of Golden betting revenue seen business combination target within Nugget Online Gaming. by Delaware on a the live, location-based and mobile Murren’s first SPAC, Acies Acquisition year-on-year basis experiential entertainment industries,” Corp., acquired -based social for January, which the SEC registration statement says. gaming provider PlayStudios earlier amounted to $1.7m “Specific sectors that we will target this month. SPACs are considered an span live events, family entertainment, accelerated path to a public listing. casino gaming, destination hospitality, GI Verdict: While much of the industry sports, sports betting and iGaming. is struggling to cope with the impact We will pursue both consumer-facing of the ongoing pandemic, Murren $15m operators as well as the business-to- is showing no signs of slowing down. business platforms that support them. With the list of names currently on Secured by Simplebet We are predominantly focused on the the Acies II board, this development is in its latest round of nancing, taking the US; however, our search may expand definitely one to keep an eye on; while total raised by the sports to international markets.” Murren certainly knows his way around betting supplier to $50m The Acies II board includes Zach the industry, meaning success is more Leonsis, son of Monumental Sports than likely on its way. Sponsored by

THE WEEK IN QUOTES THERESE HILLMAN STEPS DOWN AS NETENT CEO NetEnt CEO Therese Hillman has “It has truly been a challenge from day “Following the successful launch of announced her departure from the online one and a lot of tough decisions had to Virginia’s sports betting program, it is slots supplier effective immediately. be made. anticipated bonuses and promotional In a LinkedIn post on 28 February, “We have had our highs and lows and expenses tied to customer acquisition Hillman confirmed “today is my last day I am very thankful for the hard work will decline considerably, increasing adjusted gross revenue and tax at NetEnt” after nearly three years as that was carried out with exciting game revenues to a more sustainable level.” president and CEO of the supplier, having releases, new market entries, the Red taken up the role in May 2018. Tiger acquisition and much more, and A statement from the Virginia Lottery, She joined NetEnt in January 2017 as at the same time, going through savings after the state’s online sportsbooks CFO and spent time as acting CEO in April programs and re-organisations. generated $59m of handle within 2018, before taking on the role full-time “Now, our group has been integrated the rst 11 days of sports betting a month later. to Evolution and is in the best of hands. I launching in January Hillman helped oversee the supplier’s am excited to see how the business will acquisition of Red Tiger in September continue to develop and I am also looking 2019, in an all-cash deal with an initial forward to seeing the product innovations “Firstly, I apologise profoundly for value of £197m ($274.8m). that will be offered to operators and any offence that this photo has caused Her announcement comes several players around the world.” and can categorically state the welfare months after the supplier was fully taken GI Verdict: Hillman’s exit was on the of each and every horse under my care over by Evolution in early December, after cards ever since Evolution completed its is paramount, and has been central agreeing to purchase NetEnt in a deal acquisition of NetEnt last December. She to the success we have enjoyed here worth SEK 19.6bn last June. took the supplier far, itself acquiring Red at Cullentra.” In her LinkedIn announcement, Hillman Tiger in 2019. With the organisation in the Horseracing trainer Gordon Elliott thanked everyone involved during her hands of Evolution now, her departure apologises for a controversial photo time at NetEnt. was inevitable, although that’s not to of him sitting on a dead horse on She said: “I would lie if I would say that downplay the influence and role she the side of a gallop my three years as the CEO have been has played in growing NetEnt to what easy and fun. it is today. Sponsored by

“I’d like to welcome John Whittingdale ENTAIN UPS OFFER TO ACQUIRE ENLABS BY 32.5% to his expanded role and enhanced responsibilities at DCMS. I know John Entain has increased its offer to purchase “We are pleased that shareholders well from my time in Parliament and Enlabs AB to SEK 53 per share ($6.25). with around 51 per cent have now in the music industry. John commands As previously reported by Gambling irrevocably agreed to accept the offer huge respect and he is a formidable Insider, Entain had stood by its original and would urge other shareholders to politician who brings a wealth of offer, making its new proposition do the same by 18 March.” experience and knowledge.” somewhat of a U-turn. Entain was itself the subject of On 7 January, Entain announced a takeover bid from MGM Resorts Betting and Gaming Council CEO a recommended public cash offer to International earlier this year, although Michael Dugher congratulates John Whittingdale MP, who has taken over Enlabs, which was met with opposition that deal went quiet quicker than anyone the overseeing of the UK Government by Enlabs shareholders. expected and seems to be off the table review of the 2005 Gambling Act That offer was worth SEK 40 per share for now. and has now increased 32.5% to SEK 53, The operator’s share price currently with the offer being declared as final sits at £14.40 ($20.11), while Enlabs’ is by Entain. up to SEK 52.40, just under the offered Rob Wood, Entain CFO and deputy CEO, price by Entain. “Sports betting is alive and kicking, said: “In a highly competitive and regulated GI Verdict: In an interesting turn despite 2020’s unfortunate turn of industry, where consolidation is a key of events for Entain, it is now the one events. We went through some wild theme, Entain is able to provide the scale looking to acquire another company, couple of months last year, which we’re and platform needed to further support having been the subject of the all going to remember, that’s for sure. We’ve defi nitely seen more uptake. We Enlabs’ long-term growth, and we firmly aforementioned takeover bid from came out really strong from 2020 despite believe Entain will be the best home for MRM Resorts for quite some time. Covid-19 and the sports shutdown.” Enlabs, its employees and customers. Focusing on the latest Entain “Against this background, we have development, however, it will be EveryMatrix CEO Ebbe Groes speaks decided to make a final offer of SEK interesting to see just how rapidly to Gambling Insider about how 53 to all shareholders, providing an or slowly this one progresses. The 18 resilient the sports betting industry opportunity to exit their investment March deadline could mark the latest in has been, despite the pandemic at a very attractive valuation. a long line of M&A deals involving Entain. Sponsored by

TAKING STOCK BRIAN MATTINGLEY LEAVES 888 TO BECOME PLAYTECH CHAIRMAN SHARE PRICES COVER WEDNESDAY Playtech has announced 888 Holdings there are better candidates to lead this 24 FEBRUARY TO WEDNESDAY 3 MARCH (4:30PM GMT) chairman Brian Mattingley is to become company into US gaming markets and its non-executive chairman from June. lead it in its various endeavours over Mattingley will take over from Claire the course of the next decade.” Milne, who has served as interim chairman Mattingley, who will succeed Milne Flutter Entertainment 5% 14,675 GBp since May 2020, after replacing Alan on 1 June, said: “I’m very pleased to Jackson who chose to step down from be joining Playtech at such an exciting his role in May 2019. time in the company’s development. The 888 chairman has been at the Playtech is ideally placed to continue IGT 6% operator since 2005 after joining as non- to build on its market leadership 19.07 USD executive director, before being appointed position and I look forward to working as CEO in March 2012. He has been in his with everyone at Playtech to drive current role since May 2015 and, before forward its strategy and capitalise joining 888, held senior roles at the likes on the opportunities ahead.” DraftKings of Gala Group and Ritz Bingo. GI Verdict: It looks as if shareholders 70.06 USD 16% Milne leaves having been appointed such as Ader have got their wish with to the board in July 2016, before being Playtech appointing the “high-profile made interim chairman last May. chairman” they were craving. Last month, Playtech shareholders Investors such as Ader were unhappy Scienti c Games 9% spoke of their dismay at failing to that Milne was chair during a crucial 52.31 USD appoint a “high-profile chairman” period for the company in the midst after Jackson stepped down. of a governance review, after it was Jason Ader, who holds a 5% fined £3.5m ($4.9m) by the Gambling shareholding in Playtech, had said: “we Commission for regulatory breaches. Elys Game Technology 2% don’t support Claire Milne as the future The appointment of Mattingley 6.70 USD chairwoman of Playtech; we believe should certainly appease them. Provided by fantiniresearch.com

JANUARY: , REGION REVENUE(M) ANNUAL LAS VEGAS STRIP FALL CHANGE % Nevada’s gaming revenue fell 26.58% to REGION Nevada REVENUE(M) ANNUAL$761.848 -26.58 CHANGE % $761.848m in January while the Las Vegas Nevada Las Vegas Strip $761.848 $321.528-26.58 -43.81 Strip fell 43.81% to $321.528m. REGION REVENUE(M) ANNUAL Clark County $617.294 -31.72 Baccarat once again had weak hold Las Vegas Strip $321.528 CHANGE-43.81 % Downtown LV $48.896 -17.29 compared to last year, though play droppedClarkREGIONNevada County REVENUE(M)$761.848$617.294 ANNUAL-31.72-26.58 CHANGE % by nearly one-third. LasDowntown Vegas Strip LV North LV $321.528$48.896 -17.29-43.81$21.021 -20.90 Nevada $761.848 -26.58 Washoe and Elk counties went against ClarkNorth County LV Laughlin $617.294$21.021 -31.72-20.90$33.489 -27.58 the grain, growing over last year with strongLas Vegas Strip $321.528 -43.81 DowntownLaughlin LV Boulder Strip $33.489$48.896 -27.58-17.29$66.179 -7.90 growth out of North Lake Tahoe and Wendover. Clark County Mesquite $617.294 -31.72$13.132 +6.31 Capacity remained at 25% for the month.NorthBoulder LV Strip $66.179$21.021 -20.90-7.90 Downtown LV $48.896 -17.29 Sports betting revenue jumped 160% MesquiteLaughlin Balance of County $33.489$13.132 $113.050-27.58+6.31 -2.22 North LV $21.021 -20.90 to $52.38m while handle fell just short of a BoulderBalance ofStrip CountyLas Vegas Locals Market$113.050$66.179 $200.250-2.22-7.90 -6.45 record with $646.68m. Laughlin $33.489 -27.58 MesquiteLas Vegas Locals MarketWashoe County $200.250$13.132 $68.730+6.31-6.45 +4.91 Boulder Strip $66.179 -7.90 BalanceWashoe ofCounty CountyReno $113.050$68.730 $48.403+4.91-2.22 +1.86 Mesquite $13.132 +6.31 LasReno Vegas Locals MarketSparks $200.250$48.403 +1.86$11.715-6.45 +5.74 Balance of County $113.050 -2.22 SparksWashoe County North Lake Tahoe $68.730$11.715 +5.74+4.91$1.991 +23.77 Las Vegas Locals Market $200.250 -6.45 NorthReno Lake TahoeBalance of County $48.403$1.991 +23.77+1.86$6.621 +24.75 Washoe County $68.730 +4.91 SparksBalance of CountySouth Lake Tahoe $11.715$6.621 +24.75+5.74$17.851 -11.46 Reno $48.403 +1.86 NorthSouth Lake TahoeElko County $17.851$1.991 +23.77-11.46$31.761 +25.90 Sparks $11.715 +5.74 ElkoBalance County of CountyWendover $31.761$6.621 +25.90+24.75$22.003 +23.13 North Lake Tahoe $1.991 +23.77 SouthWendover Lake TahoeBalance of County $22.003$17.851 +23.13-11.46$9.758 +32.63 Balance of County $6.621 +24.75 ElkoBalance County of CountyCarson Valley Area $31.761$9.758 +25.90+32.63$9.780 +12.91 South Lake Tahoe $17.851 -11.46 CarsonWendover Valley AreaOther Areas $22.003$9.780 +23.13+12.91$16.433 +16.53 Elko County $31.761 +25.90 OtherBalance Areas of County $16.433$9.758 +16.53+32.63 STRIPWendover COMPONENTS - MAJOR$22.003 STRIP SEGMENTS+23.13 Carson Valley AreaSEGMENT $9.780REVENUE (M) +12.91 ANNUAL WIN PERCENTAGE Balance of County $9.758 +32.63CHANGE % 2021 2021 Other Areas $16.433 +16.53 SEGMENT BlackjackREVENUE (M) ANNUAL$34.298 WIN-52.60 PERCENTAGE 10.26 12.8 Carson Valley Area $9.780CHANGE % +12.91 2021 2021 BlackjackOther Areas Baccarat $34.298 $16.433$28.236-52.60 +16.53 10.26-74.3 12.8 28.25 11.91 SEGMENT Total GamesREVENUE (M) $142.870ANNUAL WIN-49.94 PERCENTAGE 11.7 12.85 Baccarat $28.236 CHANGE-74.3 % 28.252021 11.91 2021 Blackjack Total Slots$34.298 $178.658-52.60 10.26-37.72 12.8 8.14 8.42 SEGMENTTotal Games REVENUE$142.870 (M) ANNUAL-49.94 WIN11.7 PERCENTAGE12.85 BaccaratTotal Slots $178.658$28.236 CHANGE-37.72-74.3 % 28.2520218.14 11.918.42 2021 Blackjack $34.298 -52.60 10.26 12.8 Total Games SEGMENT $142.870 -49.942020 11.7201912.85 ANNUAL CHANGE % Baccarat $28.236 -74.3 28.25 11.91 SEGMENTTotal Slots Blackjack $178.6582020 $334.288M-37.722019 $565.3448.14 ANNUAL8.42 -40.87 TABLETotal Games DROP $142.870 -49.94 11.7CHANGE12.85 % Baccarat $342.255M $923.266 -62.93 BlackjackTotal Slots $334.288M$178.658 $565.344-37.72 8.14 8.42-40.87 SEGMENT 2020 2019 ANNUAL Baccarat Total Games$342.255M $1.221BN$923.266 $2.221CHANGE-62.93 % -45.02 Blackjack Slots $334.288M $2.195BN$565.344 $3.405 -40.87 -35.55 SEGMENTTotal Games $1.221BN2020 $2.2212019 ANNUAL-45.02 CHANGE % BaccaratSlots $342.255M$2.195BN $923.266$3.405 -35.55-62.93 Blackjack $334.288M $565.344 -40.87 Total Games SEGMENT $1.221BN REVENUE$2.221 M ANNUAL-45.02 WIN PERCENTAGE Baccarat $342.255M $923.266 CHANGE %-62.93 2021 2021 Slots $2.195BN $3.405 -35.55 SEGMENT RacebookREVENUE M $2.277ANNUAL WIN PERCENTAGE-16.50 16.51 16.25 Total Games $1.221BN CHANGE$2.221 % 2021-45.02 2021 RacebookSlots Total Sportsbook$2.195BN$2.277 $52.381$3.405-16.50 16.51+159.9316.25-35.55 N/A N/A RACESEGMENT BOOK AND REVENUESPORTS M POOL -ANNUAL NEVADAWIN PERCENTAGE Total Sportsbook $52.381 CHANGE+159.93 % 2021N/A 2021N/A Racebook $2.277 -16.50 16.51 16.25 SEGMENT REVENUE M ANNUAL WIN PERCENTAGE Total Sportsbook $52.381 CHANGE+159.93 % 2021N/A 2021N/A Racebook $2.277 -16.50 16.51 16.25 Total Sportsbook $52.381 +159.93 N/A N/A MICHAEL ZHU SENIOR VICE PRESIDENT, Visitation to the gaming hub had been improving steadily over INTERNATIONAL the 2020 Christmas and New Year holidays, but has been somewhat OPERATIONS curbed due to increasing concerns and restrictions related to Covid-19. Nevertheless, Sands remains highly confident in the market’s PLANNING & ANALYSIS long-term prospects and aims at “making the pie bigger” by focusing THE INNOVATION GROUP on fresh and unique offerings, and enhancing attractiveness of the destination for both new and repeat visitors to Macau. In this installment of Innovation More profoundly, as market trends in Macau have been evolving Insights, Zhu takes a closer look at the over the past few years, presents an intriguing opening of The Londoner Macao in the case study on the desired “diversification” of the destination. context of historical visitation trends and the The gaming industry has a long history of boosting tourism by destination’s long-term diversification strategy. acting as a key attraction for marketing purposes, offering world-class Amid the ongoing pandemic impacts that have entertainment, and enhancing the quality of hospitality services. As severely suppressed gaming and entertainment revenues on a part of the strategic, long-term planning, non-gaming amenities in global basis, The Londoner Macao, ’s new Britain-branded Macau have been consistently gaining more weight of capital spend resort, made its debut last month; with a unique set of offerings for new and existing properties. Such non-gaming projects continue that are positioned to reach a wider range of guests and reflect to get bolder, bigger and better, whether through sheer development the trending diversification of the world’s gaming capital. size or diverse and dramatic elements, and create an atmosphere that The -themed integrated resort (IR), located across the appeals to guests outside of the traditional “core gamer” segment; street from and , represents reaching a wider range of guests and/or more frequent visitation to a thorough revamp of the complex formerly known as Sands transform Macau into a true world tourism and leisure centre. Central. At a development cost of nearly US$2bn, the first phase of The enriched, non-gaming amenities have helped and will continue The Londoner Macao features the all-suite Londoner Hotel with to help Macau achieve a healthier mix of gaming and non-gaming approximately 600 luxury suites, a Victorian-style glass atrium known revenues. Prior to the pandemic, Macau’s non-gaming revenue as as the Crystal Palace, a series of interactive London-themed attractions, a percentage of total revenue had grown to more than 10% from low dining venues, MICE space, and a 6,000-seat arena. More amenities single digits in the early 2010s, but still fell quite behind the Las Vegas and attractions, including another luxurious 370-suite hotel, the Strip’s 60-70% range, which is commonly viewed as the gold standard Londoner Court, are slated to roll out during the course of 2021. when it comes to non-gaming amenities. In its local development Designed to attract incremental visitation to the entertainment plan, the Macau Government suggested that a “40-60 split” (40% GRAPH 1 hub rather than cannibalise theGRAPH existing market, the 3new iconic resort non-gaming and 60% gaming of total revenue) in the medium term opened at a delicate time during the city’s recovery from the pandemic. would be a strategic goal.

Non-Gaming revenues as a percentage of total revenue Source: Macau Statistics and Census Service, UNLV Center for Gaming Reasearch

Macau Las Vegas Strip 80.% 100.0%

80.0% 60.% 56.5% 53.8% 65.1% 65.8% 66.0% 65.7% 46.7% 45.2% 63.0% 63.2% 65.2% 44.6% 43.3% 60.0% 40.% 39.5% 33.9% 30.7% 26.8% 40.0% 20.% 20.0% 10.7% 10% 10% 10.4% 3.8% 4.2% 6.2% 0.% 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 While Macau has been known for getting repeat visitors, what As the conventional Macau-style junket model continues to face the city needs now are new guests to the market. One segment of headwinds, the diversifi cation from VIP-driven volume to more particular interest is family travel. Like The Londoner, other properties sustainable premium mass and mass-based growth has increasingly in Macau are expected to introduce more family-oriented and family- become a focal point. This is well refl ected at The Londoner Macao. friendly amenities to provide a one-stop entertainment destination Not only can the strong connections to British style be appreciated for visitors of all ages. Whereas many visitors are currently restricted by mass visitors, the property also provides premium off erings in terms of available travel options due to the pandemic, it may be a like the exclusive Suites by David Beckham – located on the top good time for Macau to connect with such prospective visitors. The two fl oors of The Londoner Hotel, bearing personal touches by Londoner Macao is playing an exemplary role on that front. the former England football star – to cater to premium travelers Within the gaming business itself, it also would make the industry from key feeder markets. more sustainable by nurturing mass-market gaming rather than On balance, whereas Macau undoubtedly remains the world’s relying on the high-grossing but volatile VIP segment. In recent years, largest destination gaming market, the underlying dynamics and Macau has seen the non-VIP segments account for more than half conditions have been constantly evolving. The Londoner Macao its overall gaming revenue, in contrast to no more than a third of refl ects these changes; and Macau’s eff orts to grow in a sustainable that in the early 2010s, GRAPHwhich has established 1 a more robust gaming , capitalise on the booming and increasingly wealthy GRAPH 3 revenue structure that helps the city to be more resilient against middle class in the region, and better stimulate tourism and related economic fl uctuations. economic benefi ts.

Non-VIP Revenue as a Percentage of Total Gaming Revenue in Macau (2011-2020) Source: Macau Statistics and Census Service, UNLV Center for Gaming Research Macau Las Vegas Strip 80.% 100.0%

80.0% 60.% 56.5% 53.8% 65.1% 65.8% 66.0% 65.7% 46.7% 45.2% 63.0% 63.2% 65.2% 44.6% 43.3% 60.0% 40.% 39.5% 33.9% 30.7% 26.8% 40.0% 20.% 20.0% 10.7% 10% 10% 10.4% 3.8% 4.2% 6.2% 0.% 0.0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019

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