Good news looks set to continue for the world’s largest casino city. Macau posted a better than expected 7.4 percent rise in gambling revenue for September making it the second consecutive month of growth after 24 straight months of contraction.
Vast new integrated resorts such as Sands China’s Parisian and the Wynn Palace have helped to lift wagers from VIPs, a vital cohort of players whose spend has dropped substantially since China’s corruption crackdown began in 2014.
The $2.3bn (E2bn) of gambling revenue recorded for September even the uppermost of analysts predictions, which ranged from unchanged at 1.1 percent to five percent growth.
We are concerned with the sustainability and quality of the gross gaming revenue improvement
Analysts have warned the uplift could prove to be short-lived however, as the influx of wealthy players appears to be the result of casino credit extensions temporarily offered at the larger resorts.
“We are concerned with the sustainability and quality of the gross gaming revenue improvement,” said Nomura analyst Richard Huang.
Conversely, revenues from mass market players, believed to be the key to Macau’s recovery, failed to grow significantly. Overnight visitors spiked since August, but again, observers caution this is more to do with a glut in hotel rooms encouraging operators to lower their prices, rather than the awaited surge in popularity among low-income gamblers.