Macau is poised post its first annual growth in three years
December 02, 2017 7:57 AM
by Robert Mann
Analysts say Macau is poised post its first annual growth in three years now that the government has released numbers showing that casinos in the world's biggest gambling hub posted a 22.6 percent revenue jump in November, compared to a year ago.
It’s the sixteenth consecutive month of growth, government data revealed on Friday.
Some analysts now predict full-year revenue growth of 18 to 20 percent for 2017, at $33 billion to $34 billion, attributable to the lucrative but highly volatile, big-spending VIP segment.
Data from Macau's Gaming Inspection and Coordination Bureau released Friday, showed revenue reached 23 billion patacas ($2.87 billion), the second highest monthly total this year. Analysts expected improvement of only of 16 to 22 percent.
The newly released results reflect a trend towards continued recovery for casino companies. Revenue had dipped to five-year lows during a central government campaign starting in 2014 against shows of wealth among public officials. The move coincided with a slowing of general economic growth in China that negatively effected Macau, the only part of China with legalized gambling.
Major U.S. companies, MGM Resorts International, Las Vegas Sands and Wynn, through their Chinese subsidiaries, are all major players in Macau.