Macau Gambling Revenue Increases 14 Percent in 2018
Macau gambling revenue improved 14 percent in December. In addition, it grew 16.6 percent year-on-year. Despite the slowing Chinese economy, the Asian gambling destination remained strong.
The semi-autonomous Chinese territory improved its revenues despite trade war concerns with the US. In December, Macau gambling revenue achieved its biggest increase in four months. For instance, casinos attract visitors with a wider range of entertainment offerings. As a result, the local economy didn’t rely much on high rollers.
At present, casinos in Macau are providing more entertainment options. As mass market visitors increase, global gambling reviews are optimistic about Macau’s future.
Effects of Trade Dispute on Macau Gambling Revenue
The US imposed additional tariffs on Chinese goods in 2018. As a result, there’s a drop in consumer and business confidence in Macau. In the first quarter of 2018, revenue growth dropped to 9 percent from 22 percent the previous year.
Some casino operators showed concerns about the trade dispute between the US and China. In the next couple of months, the Chinese government will review long-term casino concessions. That’s why Pay per head bookie providers are looking at effects the reviews have on US-owned companies.
There are six US-owned casino operators in the Chinese gambling hub. In addition, their licenses will expire in 2020 or 2022. When they expire, operators need to bid again. Their right to operate is in the hands of the Chinese government.
Gambling stocks dropped due to concerns about the US-China trade war. As a result, shares of US-owned gaming companies lost more than 20 percent since July.
Investment banks have downgraded their forecasts for Macau gambling revenue in 2019. Morgan Stanley reduced their estimate from 12 percent growth to 5 percent. The Deutsche Bank also cut its forecast to 5 percent fall from 4 percent growth estimate.
Economic analysts don’t see casino concessions used as bargaining chip in the trade war. They conceded that relation between the two countries remains uncertain. However, there are many things to worry about than gambling news from Macau.
