Macau Stocks Soar While Las Vegas StrugglesPublished January 6, 2010 by OCR Editor
Opposing outlooks predicted for the casino industries in Macau and Las Vegas in 2010.
Gambling revenues in Macau reportedly rose by 48 percent during December compared to one year ago indicating sustained growth.
This is welcome news as many companies in Macau had been forced to cut costs during the difficult times of 2009. Gambling revenue in Macau totaled 119 billion patacas ($1.4 billion) last year and the overall on-year growth was 10 percent.
This week's positive announcement for the world's largest gambling market also caused a sharp rise in the share prices of many Macau-based casinos such as Sands China, the Macau unit of Las Vegas Sands, Wynn Macau and SJM Holdings. Some casino stocks gained more than 5 percent in value.
The first half of 2010 is expected to be very strong and build on this revenue growth. In fact, it is predicted that Macau gambling revenues will rise by a further 17 percent during 2010 provided the Chinese government doesn't introduce visa restrictions. The highlights are tipped to be Wynn Macau which will be opening a new resort in April and SJM which just opened ‘Casino Oceanus'.
Meanwhile in Las Vegas
The outlook, however, for Las Vegas-based casinos is unfortunately not so optimistic. The Las Vegas strip has already suffered 22 consecutive months of declines in gambling revenue. Markets in Atlantic City, Connecticut, Southern California and Southeast Florida have also been hit hard and a few casinos are even expected to close.
Analysts speculate that unemployment and reduced demand throughout 2010 will continue to affect Las Vegas.