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June 11, 2013

Macau Gambling Revenue May Double By 2017

Filed under: Casino — Tags: , — OCE News @ 6:15 am

Those who follow gaming and gambling news already know about the amazing success Macau has had with its casinos and resorts. Macau is the only area in the huge country of China where casino gambling is legal. It has now been reported that Macau may see a doubling of its annual gambling revenues in as little as four years. This assessment came from a report issued by Nomura Equity Research.

Back in 2012, it was reported that Macau gaming revenues had hit $38 billion in US dollars. This was a record level. Even so, Nomura goes on to say that stronger consumer demand will almost certainly push revenues to $70 billion by the time 2017 rolls around. Also contributing to the increase is that officials in Beijing officials are now allowing even more cities to take advantage of the Individual Visa Scheme.

The study used growth rates for Las Vegas markets that took place between 1990 and 2005 for its template. It was able to conclude that a market that is undersupplied in Macau now will allow for very strong growth in the future. Also, Macau has a 3 percent annual limit when it comes to adding new gaming tables. This will help to ensure that a positive trend between supply and demand will continue.

The study went on to sat that Macau now has 57,187 gambling seats. This makes a ratio of one gambling seat for every 1891 people who live in Hong Kong and Guangdong. These areas are where most of those who gamble in Macau come from. In the US, the ratio is one gambling seat for each 227 people. It should be noted that that ratio stated in the report does not include other people living in China. Once those people are able to get into Macau easily, the revenues could be staggering.

Because they are having such huge success now, and see more success in the future, Macau is not too anxious to get into the online gaming market. There may be one exception to this, however. It has been reported that the most recent administrative regulations that govern slot machines has in it a section that is completely devoted to the operating mobile devices inside casinos. This new change is said to only be sensible if there are some types of plans to open sports betting.

In Macau, sports betting is not nearly lucrative as other types of betting. In 2012, it only brought in a little over $50 million. For that same period, sportsbooks in Nevada brought in almost $170 million. It has been reported also that while the general public may not be too interested in sports betting, investors are. As of right now, the contract for any sports betting is being held by Macau Slot. That contract was just renewed for another three years. No action can be taken on sports betting action until at least 2015, and by then the stakes at gaming tables may make it a worthless endeavor in comparison.

March 11, 2013

Macau Gambling Drives Las Vegas Earnings At the Las Vegas Sands

Filed under: Casino — Tags: — OCE News @ 3:41 am

The Las Vegas Sands is a company that ended last year with record earnings. One of the reasons for the Las Vegas companies huge growth in earnings has been a growth in Macau and other Asian markets that the company has expanded to in recent years. The company has reported that a total of 62% of its fourth-quarter operating profit, a total of more than $1 billion came from the casinos and resorts that they have currently placed in Macau. The chairman of the casinos, Sheldon Anderson, told investors in a recent earnings call that the growth of the company is expected well into the future. The company recently opened a resort in Macau that has more than 2100 rooms, the Sheraton. The company has also planned in addition of more than 200 table games, coming in the first quarter of 2013.

Although Singapore as a country side huge follow 29.1% of the total revenue of the companies stationed there, it still represented about 30% of the company’s overall revenue. The fourth quarter net revenue of the company increased 20.9% to a total of $3.08 billion. This was a record for the company, even before the 2008 financial collapse. The year-end revenue increase the total of 18.3% to a total of $11.13 billion. This was also a record for the company. The company saw huge gambling volume increases in Macau, which drove the operating profits of all of the different resorts located in Macau to a total of $622.2 million. Macau is a region that is known to casino operators as one of the biggest operators of table games, with the growth of 52.6% overall to a record seven and earned $69.6 million.

The Sands Board also announced that they were going to increase their quarterly dividend by a total of 40%. This is good news for shareholders who last year sought 25 cents per-share dividends, and this year are looking to see $.35 per share dividends. The huge gains in China were able to offset some of the losses that the company saw in Las Vegas itself. In fact, the Las Vegas resorts reported quarterly earnings of $87.9 million, which was a total drop of 34.7% over 2011.

It will be interesting to see if the company is able to improve upon their Las Vegas earnings, while still expanding their presence throughout Macau and China. The company is one that is done well, but not so well in their base city of Las Vegas. The company continues to be a record setter when compared to the company’s past, and there are various things that need to be taken into account in order to ensure that they are able to improve upon the revenue that is generated in Las Vegas,and continue their good streak across the globe.

“We’ve been on the ground for some time in Japan, Korea and Vietnam,” Adelson said. “We’re also looking for more opportunities in Europe and South America…I couldn’t be more optimistic about the future.”

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