GAMING ALERT | Slowdown expected to continue for 5th month

The gaming sector should see its revenues shrink for the fifth consecutive month in October. Sources linked to Sociedade de Jogos de Macau (SJM) and Melco Crown contacted by the news agency Lusa estimate that the decrease could range between 10 and 13 percent.
The scenario differs from last year because in October 2013 local casinos recorded their second best month in terms of gross revenues, amassing MOP36.4b.
“We are still at the beginning of the month, but given the results of the Golden Week we believe that the October revenues will improve when compared to the previous four months. However, year-on-year the results will decrease above 10 percent again,” an SJM source said.
If the worst-case scenario for the gaming operators is confirmed (13 percent decrease) the accumulated revenues for the first ten months of the year will reach 307.6b. That’s 3.5% more than in the first ten months of 2013.
Gross casino revenue in the world’s biggest gambling hub dropped 12 percent in September, the steepest slide since June 2009 and a fourth month of declines, according to official data.
“Gaming revenues are falling and a profit fall when compared to 2013 can’t be discarded,” a Melco Crown source told Lusa. The same source added that the losses are related to “a stricter control on the part of the mainland authorities of the money that is transferred outside its borders, that is limited [by law] to 20,000 yuan.” MDT/Lusa