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Macau November Gross Gaming Revenue Up By 23%
- December 22, 2017 By Riley Wilson -
Macau gaming market recorded a substantial growth in November 2017, which is great news for the Chinese special administrative region, especially bearing in mind the expectations weren’t so optimistic.
According to the data published by the territory’s Gaming and Inspection Bureau (GIB), November performance was much stronger than initially estimated.
A Great Result
The numbers reveal Macau managed to record $2.86 billion in Gross Gaming Revenue during November, which is the seventh month this year the region has reported a year-on-year rise of 20% or more.
Market analyst claim this jump was the result of an increased activity among the high rollers and in VIP market, which expanded by 30% in November, indicating a one digit rise in numbers of casual players and mid-ranging gambling activity.
For the eleven-month period ending on November 30, Macau revenues went up by 19.5% over the last year’s figures. According to current estimates, December 2017 growth should once again exceed 20% (reaching 23%), while the full year figure also going up by at least 20%.
On the Road to Recovery
The latest Gaming and Inspection Bureau (GIB) reports suggests that the Macanese brick and mortar casino industry is growing at a steady and healthy rate. Macau brings a lot of money to China, and the current recovery of the territory’s casino sector will undoubtedly result in more revenue money going to the mainland.
It is expected that gambling revenue will be around $34 billion, which is still far from 2011, the best year so far for Macau.
Macau Cotai Strip casinos, including Galaxy Entertainment Group Limited, Wynn Macau Limited, and Sands China Limited demonstrated strong performances. Although VIP players made a significant contribution to the overall rise of revenue (with an average wagering of $151,000 per bet), there are certain macroeconomic factors that could be a reason for concern and reflect negatively on the gross gaming revenue figures.
In addition to all of this, there’s also the issue of opening family-friendly entertainment options at Macau’s 6 licensed casinos, which is being seriously considered by the authorities, and the increasingly strict regulation, which thankfully hasn’t reflected in the current results.