Macau Gambling Revenue To Grow By Just 1 Percent This Year: Deutsche BankTop Bank Revises Estimates From 10-Percent Growth |
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Horrible news for Macau, currently the world’s top gambling hub.
A major European bank now predicts that the former Portuguese colony will see gaming revenue growth of just one percent this year. Deutsche Bank scaled down its estimate from 10 percent.
From a MacauBusiness.com report:
Deutsche Bank has reduced its forecast of growth this year in gross gaming revenue in Macau’s casinos to 1 percent from 10 percent. The bank predicts that the slowing of the flow of revenue from VIP gaming will be accompanied by a slower flow of revenue from mass-market gaming. And it has given a warning that the increase in supply in the gaming market as the first of the new casino-resorts in Cotai open next year may fail to spur new demand.
That forecast is devastating when you consider that earlier this year The Wall Street Journal reported that at least one analyst predicted that Macau gambling revenue would grow by another 20 percent in 2014, while another said that in 2017 it would hit a whopping $77 billion in market size. The latter estimate seems to also be in serious jeopardy of not happening.
In 2013, Macau casinos raked in $45.2 billion from gamblers.
Macau currently has 35 casinos. A total of eight more resorts are in the pipeline.
The city has experienced three straight months of gaming revenue decline.
June’s year-over-year drop was the first since 2010. After June’s performance, analysts blamed attention on the World Cup in Brazil for the drop in casino win.
According to Reuters, a stepped-up campaign against corruption and falling housing prices in China were the reasons for weaker demand from high-rolling VIP customers.
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