Macau Casino Revenue & Singapore Casinos’ Hope

Posted: September 5, 2011 in Uncategorized

5th Sep 2011 Mon

Macau Gambling Revenue Up 57% in August 2011

Macau Business Macau Gambling Revenue Up 57% in August.  Gambling revenue in the Chinese territory rose to 24.77 billion patacas ($3.09 billion) last month, up from 15.77 billion patacas a year earlier, according to data from Macau’s Gaming Inspection and Coordination Bureau. Macau overtook the Las Vegas …Macau gambling revenue surges 57% y-o-y.

Our assessment is that, with Chinese government continues to cap its mainland property speculation and prices, more hot cash will flow into Macau casino enclave. Such “cash Flow” have been pumping through the junket operators channel.

On the other hand, Singapore casinos are facing an uphill task in expanding market share in the Southeast Asian region.  Its mass market segment apparently has come to a halt with limited mass market expansion potential. Its repeat cycle seems too short for Malaysian and Singaporean local players pool. Unless there’s opening in Junket licensing by Singapore authority, casino revenue growth for Singapore IR casinos is expected to be slow and may be stagnated in the coming year. Though the IR casinos have opened for more than a year since 1st H of 2010, there’s still no sign of the authority to grant any Junket license to whatever applicants. It’s believed that Singapore is playing a very cautious game so far, as to closely monitoring the operating environment of the two casinos in the city-state. The CRA (Casino Regulatory Authority) does not want to let loose its control of junkets too soon and it may cause some setback to its social and political stability. There’s always a price to pay in allowing Asian Junkets into the arena.  Those who bet on Genting Singapore stock price may want to think twice…

Expected growth rate for Singapore casinos revenue is assessed to be 10 – 15% at best (without Junket); and depends on type & size of junkets been approved to operate in there, there may be a higher surge of revenue growth up to 25 – 30% annually for the first few years of issuance of junket licenses, depending on economic trends going forward.

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