Macau Says August Gambling Revenue Second Highest on Record

Written by:
Guest
Published on:
Sep/03/2012
Macau Says August Gambling Revenue Second Highest on Record

HONG KONG, (Reuters) - Gambling revenue in Macau grew 5.5 percent year-on-year in August, government data showed on Monday, signalling a muted pick up in growth buoyed by demand from mainland gamblers.

Cake-Square-010712.jpg

August revenue of 26.14 billion patacas ($3.27 billion) was the highest for a single month this year and compared to 24.78 billion patacas in August last year. The highest revenue intake was recorded in October 2011 when Macau took in 26.85 billion patacas.

While Macau was one of the world's fastest-growing economies in 2011, an economic slowdown in mainland China that has rippled across industries from the country's vast manufacturing sector to the property market has started to seep into the casino-studded enclave.

August's data came in at the lower end of forecasts with analysts expecting growth of between 7-9 percent. Macau is the only place in the country where Chinese nationals can legally gamble in casinos. The tiny hub, a third the size of Manhattan has been a key beneficiary of China's rising consumer power and is now the largest gambling market in the world.

Michael Ting, an analyst at CIMB Group in Hong Kong, said revenues from the mass market segment, made up of China's aspiring middle class, were still strong while the lucrative VIP market seems to be stabilising.

"It doesn't seem to be getting worse, so I think gross gaming revenue growth for the rest of the year will just tread around mid single digits or so," Ting said.

China's factory surveys for August, key indicators for the state of the economy, showed the manufacturing sector has been badly hit by slowing new orders, a sign that the pace of growth in the world's second-largest economy will weaken well into the third quarter.

Government data in August showed that Macau's gross domestic product significantly slowed in the second quarter, up 7.3 percent from 18.4 percent growth in the first quarter this year.

Analysts are mostly bullish on the long-term fundamentals of Macau, citing a highly underpenetrated Chinese market, substantial infrastructure improvements to more quickly connect Macau to the mainland and increasing purchasing power of a growing middle class.

Yet the majority of analysts have scaled back their expectations for gross gambling revenue growth this year, expecting around 10 percent compared with more than 20 percent expected at the start of the year.

Since May, visitation growth is down 5 percent year-on-year, U.S. brokerage Wells Fargo wrote in an August note.

Gambling News

Indian Cryptocurrency Exchanges Prepare for Ban

Indian Cryptocurrency Exchanges Prepare for Ban

The Reserve Bank of India will no longer permit financial institutions to do business directly with that country's cryptocurrency exchanges. 

New Jersey’s Online Casino Action Sets the Stage for Online Sports Betting

New Jersey’s Online Casino Action Sets the Stage for Online Sports Betting

Gambling has always been big at real money casinos in Atlantic City and racetracks across the Garden State. New Jersey has just risen the stakes this month as the second state in the country offering legal sports betting. This follows the month of May where it has been reported that casinos in the state took in $22.37 million in gross revenue on just its online real money casino business.

Doh! Hard Rock Casino Erects 30 Ft Guitar With Mispelled Word

The soon-to-open Hard Rock Hotel & Casino in Atlantic City had to work quickly to fix a misspelling on a 30-foot-tall (9-meter-tall) guitar installed this week.

Google Play Changes Stance on iGaming Apps

Google Play Changes Stance on iGaming Apps

Google Play has a wide array of apps available in its Android-exclusive store. However, fans of iGaming and online sportsbook apps were facing a ban as originally planned by the gaming giant.

Ocean Resort Casino Owner: We'll Surprise the World

Ocean Resort Casino Owner: We'll Surprise the World

The owner of Atlantic City's Ocean Resort Casinos promises to "surprise the world" when the former Revel casino reopens next week.

Syndicate