Reuters – The casino hub of Macau raked in a record 38 billion patacas (S$6.1 billion) in gambling revenue last month, with strong spending from wealthy punters over the week-long Chinese New Year holiday.
Gambling revenue growth in Macau, a Special Administrative Region that is the only place in China where casinos are allowed, soared 40 per cent from the same month a year earlier, far ahead of analyst estimates of growth between 29 and 35 per cent.
The world’s No 1 gambling hub, Macau earns the equivalent of Las Vegas’ annual haul in less than two months. February’s figure, which translates to US$4.8 billion (S$6.09 billion), compares to Singapore’s US$6 billion and Las Vegas’ US$6.5 billion for the whole of last year.
Macau’s record last month came after muted growth in January when revenue amounted to 28.7 billion patacas, with Chinese punters putting off their trips until the holiday period.
The previous record was 36.5 billion patacas achieved last October, which included the week-long National Day holiday.
Growth of the VIP segment, mainly consisting of mainland gamblers who spend more than 1 million yuan (S$207,000) per bet, is expected to slow to between 5 and 10 per cent annually. Analysts say macroeconomic uncertainty in China and the potential for slower credit growth could hit the high-roller VIP segment.
Meanwhile, analysts estimate the mass-market segment will expand between 25 and 30 per cent this year as China’s middle class continues to grow. While no new casinos are set to open in Macau this year, the city will see the opening of eight new resorts over the next three years.
Low penetration and improving infrastructure developments that will shorten the journey from the mainland to Macau are likely to continue to drive arrivals and further demand for gambling, analysts say.
