Macau revenue rises 22 percent; Singapore on taking second place; Pagcor City casino confirmed for 2016
Macau gross gaming industry revenue saw a double digit rise in the month of April. According to figures released by the enclave’s casino regulators the casinos took $3.1 billion in revenue, up 22 percent year-on-year. The figure is slightly less than what analysts expected with a number believing it would hit the heady heights of $3.3 billion. This was down to the feverish optimism surrounding the opening Sands Cotai Central. Needless to say the analysts are now slightly less bullish about Cotai’s newest son. Deutsche Bank analyst Carlo Santarelli is quoted by Las Vegas Review Journal, stating: “Contributions from Sands Cotai Central don’t appear to be having a meaningful impact on gross gaming revenue to date.”
Union Gaming Group’s Grant Govertsen added to this by saying May could still reap the benefits from its opening but the “ongoing construction disruption” could prevent the resort “reaching its full potential this year”.
Analysts in another Asian casino business hotbed are confident it can soon exceed Las Vegas. Mr Terence Wong, co-head of research at DMG and Partners Research, is of the belief Singapore is on the cusp of becoming the world’s second largest casino business location after Macau. Wong attributes much of the praise for this to the country’s two casino firms, Las Vegas Sands and Genting, as revenue looks like hitting $6.5 billion this year – surpassing the $6.1 billion of Las Vegas.
“(Marina Bay Sands) should be able to take over Las Vegas as the No 2 top gaming spot globally on the backs of the masses (that visit), while Resort World Sentosa (RWS) has its own international marketing agents that bring patrons over.”
There are those that think Singapore has better longevity than Macau due to a more diversified tourism offering, director of corporate at Fitch Ratings Nandini Vijayaraghaven, adding: “Gaming in Singapore is stable to positive. It is a preferred tourist destination, a regulated market with two casinos operating under long licence periods and in exclusivity.”
One of Pagcor City’s largest tenants will open a casino business at the location in 2016. Tourism developer Travellers International Hotel Group expects to open the Resorts World Bayshore by 2016 at the Manila Bay complex. Tina Garcia, head of the firm’s investor relations, said that “site preparation” will start in the second half of this year and added that “it will be at least four year before we can open”. They’re still the only operator allowed to operate two casinos in the country but “welcome” the new competition that will come at Pagcor City.