Casino revenue continues to increase in Macau
Macau’s casino revenue growth seems to be unstoppable. Yet again the figures for last month’s gambling income have risen following the trend for the first three months of 2014. Analysts’ estimates were for growth of between six to eight per cent but casino revenue of over ten percent for April largely beat these estimates. Macau is China’s only territory where gambling is legal and its situation is perfect for attracting players from the Chinese mainland, Hong Kong and other parts of Asia as well as from other parts of the world.Last year Macau’s casino income was up 18 and a half per cent on the revenue generated in 2012. The figures for the first four months of 2014 which represent the third month in a row of increased income are up almost 18 per cent on the first four months of last year. April’s casino income was 3.92 billion dollars. Macau’s economy has been one of the quickest growing economies in the world over the past three years. Its economy is heavily reliant on casino gambling but in recent years the Macau authorities have been insisting on casinos developing other attractions and this has led to the construction of massive casino hotel resorts providing entertainment and leisure activities for gamblers and for families.
The rise in casino revenue in April stands out, even though for some time now there have been almost constant monthly increases because April is usually a quiet month for visitors coming from mainland China to gamble in Macau casinos. It had also been estimated that growth might not be as strong as previous years in 2014 due to the fact that there are no planned openings of casino resorts this year. Another fact that could affect income from casinos is that the economic situation in China isn’t as steady as it has been and this could have a bearing on the cash flow from High Rollers who may spend less. Spending by High Rollers makes up over 60 per cent of Macau’s casino income although any decrease could be off set to a certain extent by the increase in the number of middle class Chinese gamblers in Macau’s casinos.
However, 2015 could see a major upswing in casino revenue as three major casino resorts are due to open during the year. The next wave of expansion in Macau is planned to take place from 2015 to 2018 with several casino openings. In 2015 the following casino resorts should open : The Sands Parisian, the second phase of Galaxy’s casino and Melco Crown Entertainment’s Studio City casino resort.
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