Short-Term Pain Predicted for Macau's Land-Based Casinos During World CupPublished June 16, 2014 by OCR Editor
Macau's casinos gear-up for a potential drop in revenue due to Brazil's upcoming World Cup jamboree.
The four-yearly World Cup is, behind the Olympics, seen to be the biggest sporting show on the planet. Thirty-two national teams have descended on Brazil (as well as hundreds of thousands of fans) to see who, in around a month's time will lift the Jules Rime trophy. While billions around the world can't wait for this festival of football to start, some others are more wary.
Macau's short-term pain?
Macau's revenues were already below forecasted results in May, with only a 9.3% increase. Credit Suisse has suggested that the impact of the World Cup could be to reduce June's forecasted results to another single figure gain; possibly only between 1 to 6%. The assessment also suggested that the effect should only be short-term (where the World Cup is considered) because people tend to get engrossed with the group stages when there are more matches, than the knock-out rounds, with fewer teams playing and more time between games.
Macau's casinos should probably be able to rest a little easier, if they take into account the situation before and after the 2010 World Cup. We might like to think of analysts at companies such as Credit Suisse, sitting in their glass towers and looking into crystal balls to predict the future - but their analyses are based on hard data. In June 2010, the revenues for casinos did go down in Macau, but they more than bounced back at the end of the World Cup, in July of the same year. The prediction that the same will probably happen this time around is therefore, entirely logical.
World Cup boon?
Ironically, the 2010 results show that the presence of the World Cup might actually prove to be a boon for Macau's (and no doubt other countries') casinos. People got caught up in the excitement of the tournament and wanted to continue to experience that buzz after it had ended. Perhaps it's not the worst thing to happen to casinos after all.