Saturday, 3 May 2014

Still Going Strong

Thanks to both VIP and ordinary gamblers, Macau continues to win big
If there's one sure bet in Macau these days, it's the casinos.

The casinos combined in the former Portuguese enclave took in 31.3 billion patacas ($3.9 million) last month, up 10.6 percent from a year earlier, beating analysts' estimates and defying Chinese President Xi Jinping's crackdown on corruption.

Macau reported higher gaming revenue in the first four months of this year, an increase of 17.5 percent to 133.5 billiion patacas.

Of the casino operators, Sands China run by Sheldon Adelson seems to be hauling in quite a war chest of $938.1 million ebitda (earnings before interest, taxes, depreciation and amortization).

Meanwhile, Wynn Macau's ebitda was $384.3 million, beating expectations.

Analysts believe the good times are going to keep coming... for a while.

"The VIP segment appears to remain healthy, while the mass market remains exceptionally strong," said a research report by Macau-based Union Gaming Research.

VIP gamblers typically bet more than $1 million on baccarat during each visit to Macau, and use credit lines arranged by junket operators.

According to official data, there were 895,000 tour visitors in March, of which 698,000 were from the mainland.

It's impressive to see gamblers still pushing their luck despite the ongoing anti-corruption campaign on the mainland, but more importantly that gambling is still the main attraction in Macau for mainlanders despite the local government's push for more entertainment attractions...

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