Chinese government may take steps to save Macau casino industry

5 October 2015

The Chinese government may step in to help stem the bleeding within Macau's plummeting gaming market.

According to local Macau media Friday, the liaison office between Mainland China and Macau expects the Beijing government to release measures that would support Macau's economy, notably the casino industry. The move comes the day after Macau gaming regulators said September was the 16th straight month that gaming revenue declined in the market.

The actions weren't specified, but analysts expect the moves will be geared toward improving mass market consumer trends and visitation into Macau.

"Easing of visa restrictions, easier border crossing measures and continued infrastructure improvements could be a few that come to mind," Stifel Nicolaus Capital Markets gaming analyst Steven Wieczynski told investors.

He doesn't expect the changes to include an easing of the anti-corruption campaign that has ensnared several high-end junket operators tasked with bringing big-spending gamblers to Macau's casinos.

Through September, Macau gaming revenue is down 36% over the same nine months of 2014. Macau, the world's largest gaming market by revenue, produced a record $45.2 billion in gaming totals in 2013. The figure fell 2.6% in 2014.

Junket operators have long been part of the Macau gaming structure. They market the casinos to high-end players, often utilizing private gaming rooms separate from the mass market gaming floors. The anti-corruption effort has caused high-end baccarat play to nose-dive in Macau, and some gamblers are staying away until the crackdown ends.

"We still expect the VIP market to remain constrained," Wieczynski said. "However, anything that the government does to support the growth on the mass side should be viewed positively."

Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resorts International operate casinos in Macau and are expanding their holdings.

The news helped boost the stock prices of the Nevada-based companies Friday. Wynn Resorts closed at $63.52 on the Nasdaq, up $11.81 or 22.84%. Las Vegas Sands closed at $40.87 on the New York Stock Exchange, up $3.89 or 10.52%. MGM was up $1.12 or 6% to close at $19.79 on the New York Stock Exchange.

J.P. Morgan gaming analyst Joe Greff suggested the government could "fine-tune" its visa policy from Mainland China regions, including the introduction of multi-entry visas.

"To state the obvious, any potential measures to help Macau's visitation would be a big positive for the industry," Greff said.

Even as the market continues to slide, more competition is coming to Macau.

The 1,600-room Macau Studio City Hotel-Casino being built by Melco-Crown is expected to open by the end of October. Las Vegas Sands' $2.7 billion The Parisian Macao resort will open next summer, while Wynn Resorts set a late March opening for the $4.1 billion Wynn Palace. MGM Resorts International expects to open its $2.9 billion MGM Cotai late next year.

Related Links
Stifel Nicolaus Gaming Vendor Information
MGM Resorts International Ownership Details
Wynn Resorts Ownership Details
MGM Cotai Details
Macau Studio City Details
Wynn Palace Cotai Details
Macanese Gambling


Copyright GamingWire. All rights reserved.
Featured Vendors
Casino Schedule Ease
Sunkist Graphics, Inc.
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
New Level Radio
Casino City Press
New Level Radio
Your Casino. Your Music. Your Message.
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Talisman Group Creators of EZ Baccarat
Patriot Gaming & Electronics, Inc.
Talisman Group Creators of EZ Baccarat
With over 800 tables in 150+ casinos, EZ Baccarat is the number one brand in baccarat.
Patriot Gaming & Electronics, Inc.
Patriot Gaming…Parts is what we do. Visit us: www.patriotgaming.com
Casino Network
TribalHub
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
TribalHub
24th Annual TribalNet Conference Sept 18-21, 2023 Town & Country Resort, San Diego, CA
AmericanChecked
Betson Imperial Parts & Service
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Acres Manufacturing
Broadband Hospitality
Acres Manufacturing
Cashless Loyalty & Bonusing in a Single Mobile App
Broadband Hospitality
Improve these critical guest-facing amenities: In-room TV, Wi-Fi, Mobile App. Priced right. All here
Slot Machines Unlimited
TOP ONE TECH LIMITED
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
TOP ONE TECH LIMITED
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Indian Gaming Tradeshow & Convention
.Dot-iGaming.com
Indian Gaming Tradeshow & Convention
The largest gathering of tribal leaders and casino executives in the United States
.Dot-iGaming.com
Fully loaded advanced casino platform. One time (low) fee, 100% your property, start now!
Rymax Marketing Services, Inc.
Oklahoma Indian Gaming Association (OIGA) Conference
Rymax Marketing Services, Inc.
Leader in creating award winning player & employee loyalty programs & events proven to increase ROI
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: Aug 14-16, 2023 in Tulsa!


Your Guide to 15,269 Gaming Industry Suppliers