Macau growth to impact on US operators
According to financial services firm Morgan Stanley, MGM, Sands and Wynn are set to benefit from Macau gross gaming revenue growth.
Macau.- Gross gaming revenue in Macau is set to hit €35.1 billion by 2019 and may have a huge impact on Las Vegas Sands, Wynn Resorts, and MGM Resorts. According to a note issued by investment services firm Morgan Stanley, Asia’s biggest gaming market will fall just short of its record €36.7 billion (2013) and will benefit all three US companies.
“We believe the Macau market is in the early stages of a growth plan, driven by a combination of China’s gradual transition into a high-income country, incoming infrastructure tailwinds for Macau specifically, and a more sustainable mass market mix,” the firm assessed.
The forecasted results will have a major impact on US companies, as Las Vegas Sands operates around 40 per cent of the region’s four and five-star hotels. Furthermore, Wynn’s presence will also pay dividends, while MGM sees a major boost after opening its MGM Cotai property. The latter won’t have results as great as the other two companies but is set to make an impact in Macau nonetheless.
