Macau’s casino revenue in April fell 38.8 percent as China’s widening efforts to battle against graft deterred high-stake gamblers. A wave of projects being completed amid the downturn also sparked concern.
Gross gaming revenue in the world’s largest gambling hub dropped to MOP19.2 billion (USD2.4 billion) last month, the 11th straight month of decline, according to data released yesterday by Macau’s Gaming Inspection and Coordination Bureau. That compares with a median estimate of a 39 percent decline from eight analysts surveyed by Bloomberg.
VIP gaming in Macau has been hit by President Xi Jinping’s campaign on graft that snared thousands of officials and is expanding to include executives at state-owned enterprises. Demand is further damped by China’s economic slowdown even as operators such as Sands China Ltd. are building diversified resorts and hotels to draw more mass-market clients to Macau.
“Recent data on hotel room rates and occupancy drop in Macau is concerning when we expect to see a 50 percent increase in numbers of rooms over the next 18 months,” Praveen K. Choudhary of Morgan Stanley wrote in a report dated April 28. The analyst downgraded his view to “cautious” as the casino industry showed “no signs of bottoming.”
Morgan Stanley expects gross gaming revenue in the former Portuguese colony to shrink 24 percent this year, bringing the industry back to near 2011 levels. Macau recorded its biggest monthly gaming revenue decline in February, at 48.6 percent, due to weak demand over the Lunar New Year holiday, traditionally a peak gambling period. Bloomberg
Sands China tops market
The figures released yesterday are in line with the forecasts issued by Lusa. The news agency predicted that takings would be down by at least 30 percent and possibly by as much as 40 percent. Data compiled by Lusa shows that Sands China ended the month at the top of the leaderboard, with just over 24 percent of the market, followed by Sociedade de Jogos de Macau, which held slightly more than 21.5 pct. Galaxy Macau followed, with 20 percent. The second half of the ranking starts with Melco Crown, which has just over 12.5 percent, followed by Wynn Macau, with nearly 12 percent, and finally MGM China, with almost 9.5 percent.
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