Macau Casino Revenue Up 42.4% To $3 Billion In May 2011June 1, 2011 8:20 am
Macau has posted yet another record high in its gambling figures after the month of May showed a 42.4% increase in revenue to MOP24.31 billion (US$3.03 billion).
Macau is not only the world’s biggest gambling resort, but also China’s only legal casino destination. Consequently, since 2010 mainland tourists have been flooding into the enclave in ever increasing numbers now resulting in four month in a row of record highs for Macau’s gambling revenue.
May’s impressive figures were also helped along by the beginning of the month’s week-long national holiday, as well as the May 15th opening of a new $2 billion resort, called the Galaxy Macau.
Despite the ever increasing optimism regarding Macau’s gambling revenue, RBS gaming analyst Philip Tulk sounded a slightly cautionary note when he stated:
“They have beaten my expectations. We will need to have another look at our gaming revenue forecasts for the full year on the back of this. I would be surprised if gaming revenue growth reaches this level until maybe October. Five out of the last six years we have seen a decline in June versus May. Obviously this year has the benefit of Galaxy Macau.”
The Chinese government has also urged extra caution regarding Macau’s gambling industry, fearing that the resort will fail to diversify against becoming a purely gambling destination.
They are perhaps concerned with the cautionary example of Atlantic City, which failed to expand beyond pure gambling and is now paying the price. In the future, Macau will also likely face increasing competition from regional competitors such as Singapore, Vietnam and Taiwan.
Nonetheless, considering the size and rising affluence of the Asian market, there still remains a huge untapped potential for Macau which will likely be seeing its monthly revenue records broken for some time to come.