Macau GGR to face headwind
According to investment research firm Morningstar Inc. Macau casinos GGR “will become progressively tougher over the next few months.”
Macau.- Morningstar Inc., an investment research firm, released a note stating that casino gross gaming revenue (GGR) in Macau could expand by just 10 percent year-on-year in 2017. According to analyst Chelsey Tam, “GGR comparisons will become progressively tougher over the next few months (as last year’s Sands and Wynn casino openings are lapped), and a slower economy in the second half and capital-control policy risks could create near-term headwinds.”
As reported by GGRAsia, the Gaming Inspection and Coordination Bureau (DICJ) revealed that the cumulative year-on-year gain in the market for 2017 reached 19.1 percent up to end of August.
The Morningstar analyst explained the economic growth could be harmed by policy changes in Macau in order to control money that flows from Chinese mainland to the area’s casinos.
David Katz, an analyst at Telsey Advisory Group LLC released a note last Friday addressing the outlook for Macau GGR for the rest of 2017: “The comparisons will continue to increase through the remainder of the year until at least the opening of MGM Cotai which we believe is still expected in fourth quarter 2017,” GGRAsia quoted.
