CASINO

Macau the cash cow yet again; Singapore listing in the face of regional competition

TAGs: Genting Singapore, Macau, Singapore

investing the hard way what to do about macauChina’s gambling industry enclave Macau saw 8 percent growth in gross gaming revenue in November as casinos collected MOP24.88bn ($3.1billion) from gamblers. The largest gambling industry destination on the planet performed in line with expectations set out by the likes of CitiGroup and Sterne Agee with the imminent release of Broken Tooth not even enough to dent performance.

Analysts in the region confirmed the rise was in no small part down to the enclave’s mass-market sector performing well and helping to offset a drop in VIP revenue in recent months. The Las Vegas Review-Journal also quote Cameron McKnight, from Wells Fargo Securities, as stating that economic data from China shows the economic environment has stabilized and is starting to help the market reach a safer footing.

Singapore saw its growth estimates slashed for 2013 as investment bank Deutsche Bank cut the percentage growth in half from 6 percent to 3 percent. Reuters report that Deutsche Bank expects the total market size to be S$7.4billion ($6.1bn) for the entire year with the reliance on foreign players and VIPs suggested as the blame. They do, however, expect VIP growth to be kick-started in the second half of next year after regional economic forecasts suggest the region’s economies will rise once more.

Genting Singapore, meanwhile, saw a “hold” rating attached to its shares with Deutsche giving them a target price of S$1.27 with the operator’s stock dropping off by 2 percent in Monday’s trading. The gambling destination may now take a backseat as other destinations, such as the Philippines, begin to surpass them and usurp their second-place in the world casino standings.

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