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Macau looking like Las Vegas circa 2005?

Discussion in 'Non-Vegas Hotels & Casinos' started by ruralhipster, Nov 5, 2014.

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  1. ruralhipster

    ruralhipster Low-Roller

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    Anyone else wondering if Macau is going to have a few rough years ahead?

    For some reason the Macau situation reminds me of 2005 Vegas. All it would take is the Chinese government cracking down again and all that junket money will start drying up. Some estimates have it at 90-95 percent of Macau's gaming wins come from Chinese junkets. I'm sure that kickbacks and misdirected government funds must be accountable at least a small portion of that. Couple it with a slight economic downturn and an over-expanded marketplace and it sounds like a slowdown could be coming.

    Thoughts?
     
  2. Gargamel

    Gargamel Low-Roller

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    squall or monsoon

    According to some recent reporting in the Financial Times it probably has already begun.

    from the FT.com:

    "But concerns have emerged as turnover has fallen for five consecutive months, including a 23 per cent :eek:year-on-year plunge in October that marked the steepest drop on record in the former Portuguese colony."

    "Last week, however, Wynn Macau reported that revenues fell in the third quarter as the number of high-rolling gamblers declined, sending so-called “VIP” gaming revenues down 17 per cent."

    "Mr Wynn last week said he was unsure whether the current situation was “a squall or . . . the rainy season”."

    I think one FT story mentioned that President Xi Jinping will actually be visiting Macau in December.
     
  3. Callahan

    Callahan Tourist

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    It's not the same as vegas was in 2005...Back then casinos were desperate to get anyone through the doors. Macau's casinos mass market segment is still growing despite the declines in the VIP segment.

    Also, the VIP situation is spreading to other countries, like Singapore, where resorts world and marina bay sands are sitting on 2 Billion in unpaid markers from primarily Chinese players.
    http://www.reviewjournal.com/business/casinos-gaming/singapore-casinos-battle-over-high-rollers
     
  4. hillwood24

    hillwood24 High-Roller

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    I often wonder about the vitality of Macao, as a large percentage of my brokerage account is invested in Las Vegas Sands.

    In the near term, I certainly think that we will continue to see decreasing gambling revenues, but ultimately the middle class gamblers will turn things around for Macao.
     
  5. Chuck2009x

    Chuck2009x VIP Whale

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    GDP growth in China is still over 7% a year.
     
  6. petp13

    petp13 Low-Roller

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