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Retrospective of Regulatory Changes in Gambling Industry for September 2021
Macau’s Gross Gaming Revenue For March In Slight Decrease, Still Outperforms Analysts' Forecasts
April 6, 2019 Aleksandra Zolotic
Gross gaming revenue (GGR) for the month of March in Asia’s biggest gaming enclave, Macau, fell by 0.4%, according to Gaming Inspection and Coordination Bureau data state. However, though in a slight fall, the results are actually…
… more positive than the initial predictions by analysts.
Compared to the same month in 2018, when GGR was MOP 25.95bn, this year’s was MOP 25.8bn. As for the accumulated revenue for the first quarter of the year – and while on the subject of slight declines…
…the same is expected for Macau Casinos’ 3-year EBITDA. The predictions are pessimistic, as analysts claim, due to lack of for positive gains.
Pendulum That Can Swing Either Way
As far as the predictions from the beginning of the year, Macau is expected to experience a slow deceleration in 2019. However, Grant Govertsen, Union Gaming analyst points out that, compared to February, March GGR was actually on a subsequent rise.
Seeing this as a positive sign, he commented the following:
“While it is not uncommon for total March GGR to be greater than February, this isn’t always the case, and, in our view, considering the macro backdrop a sequential increase should be viewed positively and a sign of resilience in the market.”
Macau’s Big Plans For Expansion
Though the current situation with revenue is neither alarming nor showing improvements that can be regarded as positive, still, there are many other indicators that factor into the potential to turn things around. SJM and MGM China Holdings have their licenses approved…
…until June 26th, 2022, allowing them to pursue new opportunities in the former Portuguese colony.
There are also some speculations that this extension has the purpose to put more focus on neighboring operators, making the American ones less important somewhat. If these assumptions turn out to be true, MGM China Holdings could experience notable financial gains from it. This should help them in dealing with an outstanding debt of $2.4bn, reported by Nasdaq.
The Luxurious Side Of Macau
Keeping things still on the brighter side for the city, there’s definitely a significant acknowledgment worth pointing out. Wynn Macau is the only resort in the world to win…
…the Forbes five-star awards again!
This makes for a third consecutive year for the property to receive this accolade, which is a testimony to their dedicated team capable of anticipating and fulfilling guest’s wishes and demands.
During the Chinese New Year holiday period, the visitation record was broken, as the number of tourists ed the one million mark. With 26.6% year on year increase, this makes it the first time that the amount of visits was at such an enormous rate. However, some experts still point out that…
… there’s no connection between so many visitors and spending money in casinos, as the most zealous high-rollers tried to stay away from Macau establishments.
Source:
“Macau reports lower GGR for March”, Narayan Niji, europeangaming.eu, April 2, 2019.
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There are many factors which have influence over this. Whatever long-term predictions say, there’s more than enough place for changes to happen. Both positive and negative.