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
Macanese Online Gambling
Stifel Nicolaus Gaming Vendor Information
MGM Cotai Details
Macau Studio City Details
Wynn Palace Cotai Details


Copyright GamingWire. All rights reserved.
Featured Vendors
Casino Network
Betson Imperial Parts & Service
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
Imagine This
Prezzee
Imagine This
Imagine This #1 Source for Player Gifts. Over $50 million in stock ready to ship! Let us serve you!
Prezzee
Prezzee provides digital gift cards from top brands to reward loyal guests and employees.
Casino City Press
Sunkist Graphics, Inc.
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
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: July 14-16, 2025 Oklahoma City
Concept 3, LLC
Regulatory Management Counselors, PC
Concept 3, LLC
Custom Creations, Unmatched Value – Elevating Brands with Quality & Savings Since 2004
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
Texas Slots & Gaming
Casino Schedule Ease
Texas Slots & Gaming
Wholesale gaming reimagined. Texas Slots & Gaming is your sustainable gaming partner.
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
TribalHub
Slot Machines Unlimited
TribalHub
26th Annual TribalNet Conference Sept 15-18, 2025 at Grand Sierra Resort and Casino in Reno, Nevada
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience


Your Guide to 14,987 Gaming Industry Suppliers