Gambling revenue rises in Macau after 2 year decline

September marks the second consecutive month of growth after more than two years of bad results.

Macau.- According to Macau’s Gaming Inspection and Coordination Bureau, gross gaming revenue rose 7.4 percent to €1.7 billion in September. New casino projects from Wynn Resorts and Las Vegas Sands helped attract customers to the former Portuguese colony whose numbers consistently dropped since the start of 2014.

Macau is currently the only region in China where casino gambling is legal, and is in the process of becoming a tourist destination. Revenue has fallen to five-year lows but has ticked up since the openings in August and September. The number of overnight visitors has risen since August due to operators offering cheaper hotel rooms and promotions.

The forecasts were higher than analyst estimates, which ranged from unchanged on the year to a 5 percent rise. While growth edged up from last month’s 1 percent, overall revenue was still relatively muted.

Analysts estimate that the boost was due to casino credit being extended to wealthy gamblers to boost big betting in new properties, but they questioned how long the swell would last. Richard Huang, Nomura analyst, said that they are concerned with the sustainability and quality of the gross gaming revenue improvement. “Revenue from mass market players had failed to grow significantly and new increases were from low-income VIP players,” he added.

According to Grant Govertsen, a Macau-based analyst at Union Gaming, a visit from Premier Li Keqiand later this month could result in gaming revenue returning to negative growth in October.