JUE 28 DE MARZO DE 2024 - 22:05hs.
Bloomberg survey

Analysts forecast bright future for Macau casino market

Macau’s gaming outlook for 2018 appears quite promising according to analysts, who affirm that the industry is on its way to seeing casino profits surge toward highs set before a Chinese government corruption crackdown took place. A Bloomberg survey says gaming revenue could rise up to 14% this year.

Macau’s turnaround came after its gaming-related revenue dropped from its peak in the first quarter of 2014 to a low in the second quarter of 2016; but it was not until 2017 that it became clear the recovery really had legs. The casino industry in Macau has now seen more than 12 months of consecutive revenue growth and gaming analysts estimate that industry earnings could once again surge or even approach new record highs next year, before hitting a new peak in 2019.

Considering there will be no unexpected pressures from Beijing on the Chinese economy and consumer spending, experts predict a steady growth for the casino industry next year. Analysts from Morgan Stanley, forecast the market earnings could reach up to US$8.4bn and US$9.6bn in 2018 and 2019, respectively.

This growth prediction is also based on internal market changes, as non-gaming amenities continue to gain importance in Macau and operators work towards growing this side of their business.

Analysts also say that new casino resort openings taking place this year in Macau, as well as the properties recently opened, will just not cannibalize business from existing operators, but will further boost cash flow into the market. This month, MGM China will open its US$3.3bn ‘Beautiful Lion, Beautiful MGM’ casino resort, while construction of The Grand Lisboa Palace by Hong Kong developer SJM Holdings is also underway to open early 2019.

Source: GMB / Innovate Gaming