Up in smoke | Tam says casino gaming revenue seen declining 13 pct

Macau’s casino gaming revenue is expected to drop by 12 percent to 13 percent in September from a year earlier, TDM reported citing Secretary for Economy and Finance Francis Tam.
The city had set a record for tourist arrivals in August despite gaming revenue growth narrowing, according to the report posted yesterday on the website of the state-controlled television station. This indicates Macau’s tourism market is no longer solely driven by the casino industry, the TV station cited Tam as saying.
A drop in gaming revenue in September would make it the fourth straight month of declines. President Xi Jinping’s campaigns against extravagance and graft have dented spending by high-stake gamblers in Macau.
Total gross gaming revenue in the world’s biggest gambling hub dipped 6.1 percent to 28.9 billion patacas (USD3.6 billion) in August, after falling 3.7 percent in June and 3.6 percent in July, according to Macau’s Gaming Inspection and Coordination Bureau, which is due to release September’s figures on Oct. 3.
Visa restrictions and Macau authorities’ crackdown on the use of UnionPay debit cards to transfer money from China have also deterred high-
rollers, who accounted for over 60 percent of the city’s gaming revenue.
All Macau casino operators fell at the close of trading in Hong Kong yesterday, before Tam’s comments were reported, amid wider share declines in the city as protesters blocked roads in a fifth day of pro-democracy demonstrations.
Sands China fell 2.4 percent at close in Hong Kong trading, Wynn Macau -2.6%, Galaxy Entertainment -2.70%, MGM China Holdings -2.8%, Melco Crown -3.1% and SJM’s share price registered the largest fall shrinking 3.52%, while the benchmark Hang Seng index lost 1.3 percent.
The Hong Kong Stock Exchange will shut for two days for National Day, to mark the Oct. 1, 1949 founding of the People’s Republic of China, and will re-open on Friday. China has seven days’ holiday, known as Golden Week, which stretches Oct. 1-8. Macau also has two days of public holidays starting tomorrow.
“Macau growth has decelerated sharply and will remain weak for the next few months,” Aaron Fischer, a Hong Kong-based analyst at CLSA Ltd. wrote in a Sept. 25 note. “October will run up against a tough base and there will be some teething problems around the new smoking ban.”
Macau’s health agency in May announced that all casinos are required to implement smoking bans on their gaming floors starting Oct. 6. VIP rooms will be exempted from this ban. MDT/Bloomberg