Macau Casino Revenue Soars 70% In July To $2 Billion

The Chinese peninsula of Macau is dubbed the “Monte Carlo of the Orient” and took over the mantle of world’s biggest gambling resort from Las Vegas in 2006.
While Vegas continues to languish in the doldrums, Macau’s monthly casino revenues keep on going from strength to strength and in July reached a new record high of $2 billion, up 70% from the same period a year earlier.
July’s revenue figure was also 20% higher than that of June’s, helped in part by an influx of gamblers after the 2010 FIFA Football World Cup drew to a close.
Despite China’s economic growth falling slightly to 10.3%, Macau’s gaming revenue for the first 7 months of 2010 continues to climb and is currently 67.5% higher than the same period in 2009.
Commenting on the figures, Jefferies & Co analyst David Katz said: “These results are better than expected and confirms our belief that Macau gaming revenue will continue to be strong throughout 2010, despite a modest cooling of the Chinese economy.”
Analysts, however, are predicting a slowing down in revenue growth for the second half of 2010 to around 30 or 40%, perhaps as a result of the Macau government’s strategy of branching out into more entertainment and leisure areas.
In the meantime, the casinos are showing no signs of letting up and, as analyst Brad Dawkins points out:
“At some point, revenue is going to have to max out and stabilize in Macau, but right now, that is not the case. The amount of revenue these casinos are making is almost unbelievable at this tough economic time in the world.”