Macau’s total gaming revenue rose 12 percent in June from a year ago, following paltry 7 percent growth in May. That is a far cry from the blistering pace of expansion that fuelled a seven-fold increase in gross gaming revenue between 2004, the year the first foreign-owned casino opened in the city, and 2011, when casinos made USD34 billion in revenue.
Macau gaming stocks have slumped as that slowdown has become evident, with Sands China down around 30 percent since April – falling 11 percent in the past month alone – and MGM China down 20 percent since May. Wynn Macau and Melco International are both trading at record low price-to-earnings ratios.
The main reasons for the hesitation are the sheer size of the market – last year’s revenue was equivalent to seven Las Vegas Strips – and decelerating economic growth in mainland China.
(Source: CNBC)