Macau casinos extend one-year winning streak with monthly revenue rise

HONG KONG: Casinos in the world’s biggest gambling hub of Macau extended a one-year winning streak with monthly revenue rising 29 per cent in July due to a resurgence in spending by wealthy punters and increased numbers of tourists.

The special administrative region of Macau is a former Portuguese colony and the only Chinese territory where casino gambling is legal.

The industry is recovering from a more than two-year decline that coincided with a government campaign against ostentatiousness among public officials.

Gambling revenue reached 23 billion patacas (US$2.86 billion) in July, government data showed on Tuesday.

That compared with analyst estimates of 27 to 30 per cent growth.

Macau’s overall market has grown over the past year, with new resorts increasing competition for casino operators such as Wynn Macau Ltd, MGM China Holdings Ltd, SJM Holdings Ltd, Sands China Ltd, Melco Resorts & Entertainment Ltd and Galaxy Entertainment Group Ltd.

Operators may also be impacted by tighter regulations regarding the flow of yuan into Macau implemented over the past six months, analysts have said.

The expansion of Macau’s Las Vegas-styled Cotai strip built on reclaimed land has drawn gamblers away from Macau’s peninsula, a 15-minute drive away and home to MGM Macau and SJM’s Lisboa casinos.

Both MGM and SJM, which have yet to open casinos on Cotai, will be at a disadvantage until their openings, analysts said.

MGM is due to open at the end of the year and SJM has stated 2018, though construction of its Lisboa Palace has been stalled since June due to an accident.

But even on Cotai, where Sands has its gondola-filled Venetian casino and Eiffel tower replica, wooing customers has become tougher as wealthy customers become more picky on where they play, analysts said. — Reuters