Macau november revenues up 22.6 percent

Official figures on Macau gambling revenues released Friday show that the gambling island’s recovery continues, with a 22.6 percent y-o-y rise in revenue to 23 billion patacas (GBP 2.12 billion) – the sixteenth consecutive month of growth.

Macau’s Gaming Inspection and Coordination Bureau released statistics showing the second highest monthly tally this year, slightly exceeding analysts’ growth estimates of 16 to 22 percent.

While revenue is recovering, it is still below the all-time highs hit in the run-up to the Chinese government’s anti-corruption campaign and a slowdown in the Chinese economy, hovering around 2011 levels.

Analysts estimate full-year revenue growth of 18 to 20 percent for 2017, at $33 billion to $34 billion, mainly due to the lucrative but highly volatile, big-spending VIP segment. That would mark the first annual growth in three years.

The Reuters news agency reports that Macau revenue this year has been boosted by the return of gambling whales who wager around 1 million yuan ($151,308) per bet. But sustainability of the VIP segment’s strength is uncertain, analysts said, citing macro-economic factors such as a slowdown in money supply growth and real estate pricing.

The island government continues to pressure Macau land casino operators to develop non-gaming attractions in a bid to diversify Macau’s economy.