Macau increases revenue in June
The casino hub increased its revenue by 25.9 percent during June, an 11-month winning streak for the territory.
Macau.- Government information revealed that gambling revenue in Macau increased 25.9 percent to US$2.49 billion, which represents the eleventh consecutive month of winning streak. High roller VIPs contributed to the impressive results.
Last month, analysts estimated that June would mark a positive period on the local casino operations, with an approximate 23 to 30 percent. “Most expect June will represent the peak of year-on-year GGR growth comparisons (circa +30 percent). Net-net, we weren’t able to identify that next leg of market acceleration, and believe the most likely trajectory from here is a deceleration in comparisons, which, at current [stock price] levels, keeps us on the sidelines,” said Deutsche Bank Securities Inc experts Carlo Santarelly and Danny Valoy last month.
As China is focusing on gambling crackdown, it was expected that the only territory in China where gambling is legal would feature high-rollers and mass gamblers. The VIP sector represents almost half of Maca’s total casino revenues.
During the last week of June, Macau’s Gaming Inspection and Coordination bureau (DICJ) issued a statement to warn casino operators that they should pay more attention to the use of phones at gaming tables, since they’re prohibited. The entity believes that the use of smartphones was essential during this operations, therefore phones were banned from gaming tables last year. Moreover, the DICJ advised them to comply with the order since VIP rooms need a stricter monitoring and to immediately report any questionable situations. Global Market Advisors estimated that Macau’s proxy betting volume grew 15 percent from 2015 to 2016, whilst overall VIP revenue had fallen 40 percent.
