Brokerage Morgan Stanley has revised its predictions for Macau\u2019s daily average gross gaming revenue for January.<\/p>\n\n\n\n\n\n\n\n
Macau.- Morgan Stanley has predicted that Macau\u2019s daily average gross gaming revenue (GGR) for January <\/strong>might perform better than expected and increased its forecast from MOP200m (US$24.8m) to MOP250m (US$31m) arguing that recent minimum bets placed in local casinos were higher than expectations. <\/p>\n\n\n\n Based on the adjusted GGR estimate, the increase from month-to-month stands at 123 per cent<\/strong>, representing 31 per cent of January 2019’s level, with 85 per cent being mass market.<\/p>\n\n\n\n Analysts also pointed out that table minimum bets were generally around MOP2,000 in Cotai and, in casinos on the Macau Peninsula, MOP500.<\/p>\n\n\n\n The numbers topped Morgan Stanley’s expectations due to low utilization rates, which analysts believe will help boost earnings, tables and daily productivity figures for the second half of the year.<\/p>\n\n\n\n According to the brokerage, traffic on the casino floor is between 35 per cent and 45 per cent of 2018\/2019 levels<\/strong>. Analysts also added travel between Hong Kong and Macau is similar to pre-pandemic levels, but ferry and bus frequencies could multiply.<\/p>\n\n\n\n In 2019, Macau implemented high-speed stations and added 15 per cent casino rooms<\/strong>, expanded capacity at various immigration channels, and enlarged capacity at different immigration channels. According to analysts, this will enable Macau to support much higher visitor numbers in the future.<\/p>\n\n\n\n The brokerage also stated this could help the city generate higher mass revenue if spending per capita is to be kept, and added that minimum bets on many casino tables had not been reduced, which should support more elevated table productivity.<\/p>\n\n\n\n