Market Overview

Macau Gaming Market Seven Times Larger Than Las Vegas in 2013

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Macau Gaming Market Seven Times Larger Than Las Vegas in 2013

In 2013, gaming revenues in the Macau region rose 18.6 percent to $45.2 billion, according to Macau's Gaming Inspection and Coordination Bureau.

Macau's gaming revenues pales in comparison to those seen in Las Vegas. The Vegas strip generated $5.8 billion from January to November.

Macau is home to six operators, which include Las Vegas Sands (NYSE: LVS), Galaxy Entertainment (OTC: GXYEY), Melco Crown Entertainment (NASDAQ: MPEL), MGM Resorts (NYSE: MGM), Wynn Resorts (NASDAQ: WYNN) and SJM Holdings.

The six operators have been aggressively expanding in the region by adding hotel rooms, shopping malls and entertainment shows to draw Chinese tourists. Macau is a short one-hour ferry ride away from Hong Kong.

Related: Las Vegas Strip October Gaming Wins Down 5.06%

According to Bloomberg, growth in 2014 won't be as robust as it was in the previous year.

“It's going to be another strong year in 2014, while the growth rate is likely to be in mid-teens,” Grant Goversten, a Macau-based analyst told Bloomberg. “In absolute terms, it's going to be magnificent growth because of the improved rail connection and infrastructure, as well as the addition of the Chimelong theme park on the neighboring Hengqin island.”

The analysts projections are roughly in line with those offered by MGM China's Chief Executive Officer Grant Bowie. Bowie noted that he expects revenue growth to be “in the low teens.”

MGM operates a 35-story, 600-room casino resort in Macau and is building a second property in Cotai that is expected to have 1,600 hotel rooms. It is planned to open in 2016 or 2017.

Las Vegas Sands and Wynn Resorts are also set to open additional properties in the region throughout the coming years.

Posted-In: Galaxy Entertainment Grant Bowie Grant GoverstenNews Travel Global Economics General Best of Benzinga

 

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