Macau casinos are heading towards their first annual growth in three years, after posting 16 consecutive months of revenue gains in November 2017.
Data from Macau’s Gaming Inspection and Coordination Bureau showed revenues for November reached $2.87bn, the second highest amount for 2017, and a 22.6 percent increase from the corresponding figure in 2016.
Morgan Stanley had forecasted gross gaming revenue (GGR) growth of just 10 percent this year, but some analysts have predicted market wide gross revenue could even go up at least 19.3 percent in full-year 2017.
Analysts Vitaly Umansky, Zhen Gong and Cathy Huang said: “Assuming a reduced GGR average daily rate of MOP720m ($89.4m) to MOP750m ($93.1m) for the remaining days of the month, we estimate December GGR to a range of MOP23.2bn ($2.8bn) and MOP23.6bn, an estimated year-on-year increase in December of 17 percent to 19 percent.”
Having already generated $30.4bn in the first 11 months, Macau Casinos are now expected to record a full-year revenue growth of 18-20 percent in 2017 for a total of $33bn to $34bn.
Nevertheless, there is still uncertainty over how the industry will look by 2022, particularly as each operator has a different expiration date on their gaming licence, with all of them coming up for renewal in either 2020 or 2022.
Authorities in Macau are expected to make an announcement in 2018 on changes to rules and regulations placed on companies wishing to continue casino operations in the city.