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Casino revenues soar as Macau shakes off global recession

Casino gambling revenue in Macau, the Chinese offshore gambling destination, almost doubled last month, according to a report from the Bloomberg business news agency. Gambling revenue for the city's casinos in May 2010 rose to about 17 billion patacas (US$2.12 billion) from 8.8 billion patacas a year earlier, according to unidentified sources. The total for the five months through May rose to about 72 billion patacas from 43 billion patacas a year earlier.

Macau gambling revenue surged 57% in Q1/2010 to about 41 billion patacas as China's economic growth accelerated to 11.9%, the fastest pace in almost three years.

"The strong growth for gaming revenue seems to come from more VIP versus mass" gambling, Huei Suen Ng, a Hong Kong-based analyst for CLSA Ltd., said in a note to clients. "The trend will favour casino operators who target VIP gamblers, or those who play at high-limit tables where bets can go up to as much as 2 million patacas per hand."

The casino companies with "larger VIP exposure" are Wynn Macau Ltd., Melco Crown Entertainment Ltd., and Galaxy Entertainment Group Ltd., the CLSA analyst said.

CLSA analyists report that billionaire Stanley Ho's SJM Holdings Ltd. has the highest market share among Macau casinos with 32%, followed by Sands China Ltd. with about 20% and Wynn Macau with 16%. Melco Crown had 14%, Galaxy had 11% and MGM Mirage had 7%.

Source: InfoPowa News

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