Macau casinos income to surge by 40 percent to $2 billion
Reports by Macquarie Securities have stated that revenues generated from the gambling industry in Macau are expected to surge about 40 percent to reach $2 billion. $773 million was generated in the countries casinos by September 12 according to Macquarie’s gambling research expert, Gary Pinge in a public statement in earlier in the day. He stated that if no major changes occur in the rest of the month then gambling revenues are expected to hover around 35 to 40 percent more every year.
Macau is the biggest gambling destination in the world and was formerly colonized by Portugal. Economic challenges in the beginning of the year led to the first six months of the year achieving lower sales than the period from July to December 2009. However the six casino firms in the country are now seeing their sales near last year’s figures. Las Vegas Sands Corp. generated about 73 percent of its total income from the Asian country expects to generate 30 percent more income from July to December of this year which is very lower compared to the 67 percent it expected between January and June of this year.
Macau is the only Chinese territory in which gambling is allowed seem to be expanding their revenues and any declines are not expected. There was expansion in even VIP gaming in August.
Wynn Macau Ltd. And its rivals have more demand from high stakes gamblers and this has resulted in a higher number of Baccarat players who gamble on more than 10,000 Patacas. Gamblers in this category made 72 percent of the revenues generated by the casinos from April to June 2010. The same period in 2009 recorded 67 percent of the casino revenues.
The Hang Seng closed to see the share price of Wynn Macau advancing 3.6 percent to HK$13.70 which was the highest since August 19. Share price of Melco International Development also increased by 4.1 percent to HK $3.55.
Pinge believed Galaxy Entertainment Group will perform better than anticipated after its share prices reduced by 1.4 percent to HK$6,44 but said nothing about Wynn Macau’s and SJM Holdings performances. SJM increased its share price to HK$7.95Q, an increase of 2.3 percent while Sands China increased to HK$12.14 which represented an increase of 0.7 percent.