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Macau gaming revenues hit record $3.1 billion in August
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LAS VEGAS REVIEW-JOURNAL
Macau's booming casino market shows no signs of slowing.
The Chinese special administrative region's 34 casinos shattered single-month gaming revenue figures in August, collecting $3.09 billion from gamblers during the month. The figure was a 57 percent increase over August 2010 and 2 percent higher than July.
Analysts said the monthly year-over-year comparisons continue to reflect the May opening of Galaxy Cotai, along with growth in high-end business.
The results also halted any worries that a softening in the world's economy or attempts by the mainland Chinese government to slow wagering will keep gamblers away. Policy changes originating in Beijing, primarily monetary policy tightening and restrictions on visitation to Macau, pose the greatest threat to future growth.
"As we have indicated in the past, we do not expect ongoing macroeconomic turmoil in the U.S. or Europe to have a material impact on Asian gaming volumes, a view further supported by strong August results," Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski told investors.
Macau's Gaming Inspection and Coordination Bureau reported Thursday that casinos collected 24.8 billion patacas, which translated into $3.09 billion in U.S. dollars. The figure topped the 24.3 billion patacas collected by casinos in May.
"We believe strong industry fundamentals have demonstrated the sector's resilience and allayed the market's concerns about slowing revenue growth," JP Morgan gaming analyst Joe Greff told investors.
Macau overtook the Strip as the world's biggest gambling market in 2006. Last year, the region's casinos brought in $23.5 billion. Analysts estimate that Macau could bring in five times the Strip's gambling revenue this year. Through August, Macau's casino revenues grew 47 percent from the first eight months of 2010.
Casinos operated by SJM, the Hong Kong company controlled by billionaire Stanley Ho, collected 27.5 percent of all the gaming revenues in the market. The opening of the Galaxy Macau on the Cotai Strip boosted the market share for Hong Kong-based Galaxy Entertainment, which operates the resort. Galaxy had 14.5 percent of the market while Australia-based Melco-PBL, which operates City of Dreams and the Crown Macau, had about 14 percent.
Three Nevada gaming companies, Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resorts International, operate casinos in the Macau region.
"Macau appears to have absorbed the new supply on Cotai," Susquehanna Financial Group gaming analyst Rachael Rothman told investors. "We are raising our marketwide estimates to reflect August's bullish data point."
Las Vegas Sands, which operates The Venetian Macau and Sands Macau, plans to add 5,800 hotel rooms and 300,000 square feet of casino space next year as part of the multiresort development on the Cotai Strip.
"Las Vegas Sands, given its properties' appeal to Asian mass-market gamblers and proven integrated resort model, remains well-positioned to directly benefit from increased visitation to Macau, particularly to the Cotai Strip," Wieczynski said.
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Gary Lovechecks do you see how much money the boys are making in Macau, why cant you get a casino in China? I think you missed the slow boat to china, now go build your farry wheel and finish the tower for 1 billion , When will Caesars pay off all the debt 18.5 billion? or will you stiff the boys at Apallo and TPG? Second thought, stay in vegas,, if you go to China you may do the same thing you did in LV . Take good propertys and turn them into dumps and get rid of people who have been with the casinos for a long time. Go back to MIT , take a class on casino ownership.
I wonder when riverboats on the Mississippi in Iowa are going to surpass Vegas?
Why are companies leaving? Google this! Gibson Guitars Uncle Sam. Read it, and weep for our country. Dear Leader, The One, is forcing the hand of private enterprise to LEAVE the United States. Perhaps Gibson Guitars can open shop in Macau or Singapore?
Yeah sure they have all that money and jobs, but do they have union representation? Are all their dangerous places labeled "Caution" by safety engineers? Do they have F-77 Fighter Jets, those planes can even fight aliens they're so advanced.
What can we say ? A stunning amount of ridiculous posts. Some dumber than others, naturally.
Blaming Harry Reid ? Beyond idiotic..Must be a tea bagger who posted that tripe. As the largest industry in Nevada, would you expect a politician to not favor that constituency ? Stop with the Reid garbage already..It's not imaginative or thoughtful..It's just noise .
Bulletin: Gaming is a capitalist enterprise. Would you expect casinos to build in dying Vegas or red hot Macau and Singapore ? Duh ! In case you missed it, Asia is where all the action is..Not here at the $9.99 buffet tables.
As for the Chinese workers - Our workers are relatively exploited as well. CEO's average pay is 30 times the workers pay. Plus, Vegas for example is the $8 an hour capital of the USA.. If you're not in a union here, you will starve,
The dumbest post award goes to: "It must be killing Wynn and Adelson to pay high taxes..etc" Gaming revenues are already 6 times higher than Vegas, and it's only thru August. 70% of the revenues in Macau come from VIP's (not penny slots)..Taxes are much more favorable for Adeleson in Singapore than Macau..Would you rather pay a higher tax on billions in revenue or millions ? Duh.
No sense trying to impart some actual facts to empty barrels.
Let's safely assume that we've heard from the Tea Party contingent with these inane comments.
Have a nice day.
Jim Murren (R) MGM // Steve Wynn (R) WYNN // Leslie Adelson (?) LVS want to say THANK YOU - THANK YOU - THANK YOU - THANK YOU to their "IN THEIR POCKET SENATOR - DIRTY HARRY REID" ------------- Harry Reid saw to it, the BIG 3 got huge tax credits, and lobbied in Nevada to have their property taxes on their Hotel Properties in Vegas, reduced by 50-60% --------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Harry wanted them to have more $$$$$ available to build and make JOBS -- They did build and make jobs, but, "NOT IN THE U.S." ---- If Harry Reid made me $$$$ BILLIONS $$$$ - I would also hire -20- buses and transport my SEIU employees to the polls (on company time) to vote for Harry. ------------ Thanks Harry - thanks for "NOTHING"
RussBBinVegas, all you stated is true, and our country lets this happen, if they were taxed correctly, to bring them in our country, US would still have factories.
Ever give a thought to where all this Macau money comes from? The newly wealthy class in China has money to burn (and blow at the casinos) because of their exploitation of their working class. If you own a factory making junk for Wal-Mart, and pay your workers 50 cents an hour, imagine the profits! Macau gambling spree here we come! Never mind those millions of overworked factory workers, left behind and living in squalor. China is really asking for trouble if it doesn't resurrect some of Mao's "workers paradise" values.
It must be killing Adelson and Wynn, to pay the gaming tax they are paying MACAU! No mention in article of that figure! Bet by now they paid more gaming tax in Macau, then they totally paid in Nevada for the last 20 years. They couldn't pay them off to get away with what they get away with here. They pay more in other US States than they do here. Billionaires, thats how you become one.
Wooooo! More tax breaks for gaming! After all, how else are they going to afford to ship jobs overseas in such mass quantities??? Or we could get rid of all the unions and let low level employees such as housekeeping live off $100 a week like they do in Macau. That would work too, right conservatives???
I used to believe that Vegas was unaffected by a slowing economy and people came to Vegas to forget their problems away. It was true to a certain extent, but not today. As for China as long as their economy remains strong, the gaming industry should do very well in Macau. If it falters, Vegas had better pick up the slack for the sake of the investors.