Melco Resorts launches refreshed ‘Melco Club’ loyalty programme

Onsite checks by GGRAsia indicate what is termed by venue staff as an “upgraded” version of the Melco Club player-loyalty programme took effect from Thursday in Melco Resorts & Entertainment Ltd’s Macau casino properties. The slogan of the refreshed offer mentioned in Chinese-language marketing materials is: “Earn points easier, upgrade faster” in terms of programme tier. An in-app message for Melco Club, viewed by GGRAsia on Thursday, stated: “The All-New Melco Club is Here!” The message added: “Accelerated Earning: Level up your play with lightning-fast points earning.” It went on to mention: “Baccarat HKD2,000 [US$255] = 1 Tier Point.” It also stated: “Slots HKD400 = 1 Tier Point”. GGRAsia understands from Thursday onsite checks that previously the threshold for one point of baccarat play had been HKD4,000, and for slot play HKD800. The checks were at Melco Resorts’ wholly-owned City of Dreams Macau and the firm’s majority-owned Studio City, both properties in the Cotai district. GGRAsia could not determine whether point redemption thresholds for equivalent rewards changed under the updated programme. The Melco Club app was also updated as part of the loyalty programme overhaul. Melco Resorts’ management mentioned on the company’s third-quarter earnings call on Wednesday a “new player’s club” that had been due to launch on Thursday. GGRAsia approached Melco Resorts asking for more details on that announcement. The firm had not responded at the time this story went online. Based on GGRAsia’s checks, Melco Resorts has two gaming loyalty programmes active in Macau: Melco Club and a higher-level Signature Club. Each club has three tiers, with the respective tiers offering different levels of gaming and non-gaming rewards. Melco Club’s tiers are, in ascending order: “Gold”, “Platinum” and “Diamond”. The Signature Club tiers are, in ascending order of status: “Ruby”, “Dragon” and “Emperor”. The latter two are said to feature member privileges offered to top-tier patrons on an “invitation only” basis. In Wednesday’s earnings call, Evan Winkler, Melco Resorts’ president, said Macau had experienced market-wide “softness” in demand – not only among the “top players” – and noted the strong competition between the city’s six gaming concessionaires. Vitaly Umansky, senior analyst at brokerage Seaport Research Partners, said in a Thursday note on Melco Resorts, but making a general comment on the Macau market: “On our calculations, player reinvestment in Macau was higher this [third] quarter.” Mr Umansky noted that “buying business” remains a strategy across the Macau gaming market. In relation specifically to Melco Resorts, he stated: “As has been the case over the last few quarters, management reiterated an optimistic tone with respect to its player reinvestment, saying that Melco was the ‘leader in rationality’”. “We do not expect Melco to ramp up promotional activity from current levels. However, there is no belief that player reinvestment will begin to be reined in across the market,” the Seaport analyst added.