Macau revenues headed toward more declines

Apr 1, 2009 7:34 PM
by David Stratton |

Casino revenues in Macau are expected to post another significant decline in March, according to a report from Majestic Research.

Based on early data and analysis, Majestic is projecting March revenue declines of roughly 15 percent to 20 percent, compared to March 2008.

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The results follow double-digit, year-over-year declines in January and February, which saw revenues slip 17 percent and 16 percent, respectively.

"The slowdown appears to be the result of further tightening of VIP credit and the enactment of stricter Macau visa restrictions during 2008," said Majestic gaming analyst Matt Jacob.

Jacob added that credit tightening is critical to Macau casinos since 95 percent of revenues come from table games. He said even though slot revenues represent only 5 percent, they are expected to increase about 7 percent in March.

Table game play, however, was off nearly 10 percent through the first half of the month.