It is a new year and there are new records to be set by the city’s casinos – and 2011 has got off to a smashing start, analysts say. So strong is demand that estimates indicated that January was set to be another record-breaking month. By January 20, the casinos had taken in MOP12.9 billion (US$1.61 billion) in gross gaming revenue from table gaming alone, sources told Macau Business. At that rate, last month should have set a new record of MOP19.5 billion for casino gross gaming revenue, the sources estimated. [Editor’s note: owing to the Lunar New Year holidays, the February issue of Macau Business went to print before official figures for January were available.] The bar was last raised in December last year, when casino gross gaming revenue amounted to MOP18.88 billion. January also brought shifts in the market shares of gaming operators. As of January 20, Stanley Ho Hung Sun’s Sociedade de Jogos de Macau continued to lead the rankings, with a market share of 33 percent, but Sands China, with 18 percent, had regained the second spot from Wynn Macau, down to 14 percent. Slightly behind, Melco Crown Entertainment remained in fourth position, with a market share of just less than 14 percent. Galaxy Entertainment Group had got off the ground floor, with 12 percent of the market, changing places with MGM Macau, with 10 percent. Gravy train There is wide agreement from analysts that there will be a new record for annual casino revenue set this year. Last year, revenue was MOP188.34 billion, 57.8 percent more than in 2009, the previous record. The new rail link between Zhuhai and Guangzhou will help further boost gaming revenue, says Citigroup. The investment bank expects the reduction in the rail journey to 90 minutes from four hours, will increase the number of day-trippers from the mainland. Citigroup predicts a 20 percent increase in the number of visitors from the mainland this year, and a 25 percent increase in gross gaming revenue. CLSA is more bullish, having already revised its early-January projections for the growth of the gaming industry this year. A note to clients by Hong Kong-based analysts Aaron Fischer and Ng Huei Suen forecasts a rise of 30 percent in annual casino gross gaming revenue. CLSA had previously forecast a 20 percent rise. For next year, CLSA estimates that casino gross gaming revenue will increase by 25 percent to US$38 billion, Bloomberg reported. “Improvements in the macro environment, as well as China’s tourism push, should result in higher average spending and hence revenues,” the note says. JP Morgan estimates that strong demand may boost gaming revenue by as much as 29 percent this year. Charts and graphics in our paper edition and MB online browseable
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