Lukewarm IR Casinos Vs Macau Gaming Hub

Posted: August 5, 2010 in Uncategorized

Based on extracts of Singapore Zaobao news (4 Aug 2010)

5th Aug 2010   Thur   “The Commentary”

Macau Achieves Another Month of Record Breaking Casino Income @ USD2b in July
 
In its 2nd quarter results, Macau has again showed that it is the undisputable King of Gaming Hub in the world. An increase of 67.5% casino revenue as at end of July, year-on-year. The first 7 months of this year the territory has gathered a total of close to MOP61b in casino total gross revenue.
Macau’s casino total revenue for the month of July scored a huge USD2b, the 2nd highest this year.
 
The Beijing central government’s macro control policy implemented to curb China’s mainland housing overheating situation has not affected Macau’s gaming industry in general. Indeed, more “Hot monies” flow over to the territory down south. However, it was cautioned by a securities firm that such growth in gaming revenue would not be sustainable into the 2nd half of this year, it was expected that growth in the 2nd half (2010) would be around 34%.
The way it goes, it is possible for Macau to achieve an overall gross gaming revenue of USD20b – USD24b for the year ending 2010.
Professional Ground is of the opinion that in comparison, it is confirmed that Singapore Integrated Resort casinos (both RWS & MBS) will NOT be a relevant factor as long as competing for Asian gaming market shares vis-a-vis Macau’s infrastructure and “ready markets” in East Asia region and its location next to the door-step of mainland China. The released Marina Bay Sands first 65 days of lukewarm result is a tell-tale sign.
 
As we had analysed before, in contrast with Macau, Southeast Asia remains a small and tight market in terms of casino gaming (i.e. propensity of casino gaming) coupled with the IR’s strict casino junket control regulation imposed. Yet there is high hope by some investment analysts as well as the bosses of the two IRs, that the market size will grow much bigger with Middle-east and even Russian casino players. This is a long shot by the way. Moreover, there isn’t a critical mass from these non-traditional markets from overseas.

* Readers may cross reference with more in depth reports in this blog:
(1) Can Singapore IR Casinos Do As Good? (30/4/2010)
(2) Breaking Revenue Records Again? In Macau (10/4/2010)
 

 

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