Macau casino revenue increased by 12.2% yoy in June2 July, 2012, 15:37. Posted by Zarathustra
The Gaming Inspection and Coordination Bureau published the latest figures for the gross revenue from Macau’s casinos.
Gross casino revenue amounted to MOP23.334 billion, an increase of 12.2% from a year earlier, a decent rebound from 7.3% yoy in May, but still a pretty slow growth rate compared to the previous few years. On a month-on-month basis, revenue fell by about 11%, although this could largely be explained by seasonality. Overall, the growth momentum in casino revenue has already stalled in the past few months.
The chart below shows the year-on-year growth in Macau gaming revenue with China’s GDP. We started looking at Macau casino revenues as a possibly proxy for China’s economic growth earlier, as the chart below shows that they track each other well.
Source: Gaming Inspection and Coordination Bureau, Statistics and Census Service, National Bureau of Statistics
We do note, however that there are concerns on Guangdong tightening visa, while UnionPay, a credit card in China, is tightening credit. The visa restrictions, in particular, happened in the previous slowdown during the financial crisis, which partly explain the fall of casino revenue in 2008-2009.