These Casino Giants are Keeping a Close Eye on Macau
Gambling revenues in Macau failed to meet expectations for the month of September, a cause for concern for some of the big-time casino players in the gambling-friendly region.
Las Vegas Sands (NYSE:LVS), MGM Resorts (NYSE:MGM) and Wynn Resorts (NASDAQ:WYNN) could not have been pleased to see the revenue increases of 12.3 percent. Totaling $2.99 billion, gambling revenues for September were the second lowest this year.
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The slowing of China’s mainland economy seems to be the culprit. Visitor levels in Macau casinos have been on the decline — accounting for the revenue growth’s failure to meet analysts’ expectations of 15 percent to 17 percent — as wealthy Chinese are less disposed to take the one-hour ferry ride from Hong Kong and place bets.
Macau is the only place in the country where gambling in casinos is legal, and the industry accounts for nearly 40 percent of Macau’s GDP.
Experts hope that figures for the month of October, which includes a long national holiday, will bounce back strong.
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