The World Cup Will Likely Hit Macau Gaming Revenue Growth (Macau Business Daily)
The 2014 FIFA World Cup is expected to slow the pace of Macau’s gaming revenue growth in June as gamblers are diverted from casinos to watch and bet on the football tournament according to a recent article in the Macau Business Daily that cited Credit Suisse.
The World Cup could turn an already weak June softer with gross gaming revenues set to increase between 1% and 6% year-on-year during the current month. If confirmed, this will be the worst gaming revenue performance of the year as so far, January has been the slowest month when revenues rose 7% while May saw 9.3% growth – well below the 14% consensus expectations.
Meanwhile, Grant Bowie, the CEO of MGM China, has conceded that the World Cup might affect the Macau gaming industry but he also stressed that it was not possible to assess the impact it will have on gaming business:
“The impact caused by the World Cup, if there is one, is that customers may be allocating more time to watching the World Cup rather than traveling to Macau… This [distraction from gaming] will be a short term effect and we expect to see increased visitation after the event.”
Nevertheless and according to Credit Suisse analysis, Macau gaming revenues recorded the biggest drop in two years during the last World Cup in South Africa back in 2010 – despite favorable comparisons with the same months in 2009. Specifically and following record growth in May 2010 when revenues grew 94% year-on-year, casino gains plummeted to a 65% increase and a 70% increase in July during the World Cup.
To read the whole article, go to the website of the Macau Business Daily.
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