Macau’s Annual Revenue Rates Sound a New Call for Optimism for 2018
Published January 3, 2018 by Lee R
Gambling increases approach new highs in Macau with significant expansion already taking place in 2018.
After some years of trepidation, the Macau Gaming landscape has taken a turn for the better.
Policy Eases
A policy to eradicate any displays of wealth by government officials had stultified overall economic growth in China for the last three years, but 2017 figures from Macau's Gaming Inspection and Coordination bureau released Monday indicate a rise for the first time, of 19 percent to 265.7 billion patacas ($33.13 billion)
Benchmarks
The growth in the special administrative region of China was consistent with analysts’ predictions of 18 to 20 percent to $33 billion to $34 billion.
As for monthly figures, gambling revenue in December was up 15 percent to 22.7 billion patacas, slightly but reasonably short of analysts’ predictions (or hopes) for 17-20 percent.
Progress
Revenue is off the highs of 2014, with monthly levels now resemblant of the 2011 levels.
Present Operator Landscape
Large casinos with holdings on the Cotai strip in the new centre of action posted the highest gains: Sands China Ltd, Wynn Macau Ltd, Galaxy Entertainment Group Ltd and Melco Resorts & Entertainment Ltd which have casinos on the Cotai strip.
These gains contrasted to Macau operators SJM Holdings Ltd and MGM China Holdings Ltd, whose market share has eroded as they await openings along the Cotai strip.
Growth Forecast
Further growth in the area should be boosted by the new resort to be opened by MGM this month, with SJM set to follow suit towards the end of the year.
The former Portuguese colony looks to be entering a new era of increased revenues and stabilized gains, bolstered not only by increasing additions to the Cotai strip, but increasingly expansive venues in the form of Integrated Resorts IR.
Outlook
With the loosening of lingering obstacles to growth in Macau, the Chinese government looks ready to harness the benefits a thriving Las Vegas of the Orient offers under their jurisdiction.
Impact
Increasing patronage of Macau operators certainly has the capability to increase iGaming activity: the more visitors to Macau, the more brand awareness and recognition will be developed organically among patrons, in turn positively impacting subsequent motivations for guests to find their favourite operators online for further play once their physical visit has happily concluded.
