Macau market due for stress test
July 27, 2016 9:44 AM
by Phil Hevener
The Macau casino market is about to get a stress test as two resorts with a combined $7 billion price tag open over the next two months.
The Wynn Palace will welcome its first customers near the end of August. The Parisian, a Las Vegas Sands property will open its doors about a month later in September.
Sands execs say their Macau properties posted actual revenue increases in June compared to the same month a year ago. This comes after more than two years of steadily declining revenues.
So Sands executives headed by CEO Sheldon Adelson are squeezing all the optimism they can out of the June performance as they head toward the opening of two of The most expensive casinos ever built anywhere.
“We can’t say what Wynn is going to do,” Adelson said this week during a session with financial analysts. “We’re hoping that he will do very well. But we don’t know and neither does he how many (gaming) tables we’re going to be getting. But we have more tables from other properties that we can move over.”
All resort executives operating in Macau have been searching frantically for signs that the downturn has reached a bottom and better days are ahead. So an uptick in revenue is good news.
But was June the first sign of a coming surge?
“We have no reason to believe that it won’t continue,” Adelson said.
LVS President Rob Goldstein agreed, saying, “My feeling is it’s very positive for us. I think the Wynn property is going to be a must-see and I think Parisian is a must-see.”