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Revenue Growth forecasted in Macau

Macau GamblingIt is being expected that revenues from casinos in Macau, which is the biggest gambling destination of the world, will rise by 30 per cent to $30 billion, as the visitors from mainland China should increase this year. The arrival of visitors in Macau rose by 15 per cent and reached 22.7 million in 2010’s first 11 months and more than 80% of these came from mainland China and Hong Kong according to the tourism industry. Also, the agency’s data said that the number of tourists coming in from mainland China increased by 20.5 per cent in the initial 11 months.

SJM Holdings Ltd., which is owned by billionaire Stanley Ho, was upgraded from “outperform” to “buy” after achieving a new share-price estimate priced at HK$18.40 at CLSA, said a note from analysts Aaron Fischer and Huei Suen Ng to the clients. The earlier predicted brokerage for Macau casino gambling in 2011 was 20 per cent. A unit of the casino company called Wynn Macau which was founded by Steve Wynn, gained 4.6 per cent and reached HK$21.50 when trading in Hong Kong closed at 4 p.m.

Melco International Development Ltd. a company having a joint venture with Crown Ltd. belonging to James Packer also rose to 4.9 per cent. The company which as per CLSA has the biggest market share in Macau, SJM, rose 4.9% to HK$14.98, which is its highest close since it debuted July 2008. The revenue from gambling from the six existing casinos that operate in Macau could increase by 25% to around $38 billion next year as reported by the CLSA analysts. Macau had overtaken the Las Vegas Strip as the biggest casino hub in the world in 2006.

 Author: Harrison Young

Harrison Young is an experienced writer, who started his career almost 8 years ago. Prior to joining our team at CasinoGamesPro, he worked as an editor for a small magazine.