Casinos in Macau report revenue gain in May

While gambling revenue increased in the Chinese hub, the results were lower-than-expected in May.

Macau.- Figures from the local regulator, Macau’s Gaming Inspection and Coordination Bureau show that gambling revenue in the Chinese territory posted a 12.1 per cent increase in May. However, the results for last months operations were lower-than-expected.

Friday numbers reveal that revenues stood at US$3.16 billion, better than the US$2.69 reported in April but less than the 16 to 20 per cent revenue increase that analysts had predicted. Last month’s results mark the 22nd month of consecutive rises, as the former Portuguese colony resurged the gambling industry after five-year lows on slowing economic growth and a corruption crackdown that started in 2014.

For the second quarter of the year, Union Gaming has lowered its forecasts for GGR to grow 18 per cent down from 20 per cent, as it expects a June performance of 15 per cent growth. “We are maintaining our full-year forecast of 17 per cent, which can be achieved via average monthly GGR of US$2.7 billion (2.3 per cent relative to the YTD average of US$2.5 billion),” the firm said.

Moreover, Bernstein Research analysts said that it is expected that June GGR will be between 14 to 16 per cent rise year-on-year. “The World Cup (June 14th- July 15th) may create some headwind for GGR this year – during the last two World Cup’s, June saw 20 per cent and 16 per cent month-on-month decline in 2010 and 2014, respectively,” the firm said.