Macau Gaming Revenue Finally Slows In September
Casinos in Macau have been on a run of revenue increases that has never before been seen within the gaming industry. Increases of more than fifty percent have become commonplace in Macau, but that changed in September.
While most of the gaming industry worldwide would have been happy with the September revenue increase of 39% last month, investors on the Hong Kong market were concerned over the smaller than usual revenue increase.
Revenue rose to $2.65 billion in September, still way ahead of areas such as Atlantic City and Las Vegas. US gaming companies with casinos in Macau are not panicking, understanding that it would have been impossible to keep the increases coming at the pace of the past year.
SJM Holdings, founded by gaming mogul Stanley Ho, had previously enjoyed a monopoly within the gaming industry, but that monopoly ended when the government opened up the market to foreign companies such as Las Vegas Sands and Wynn Resorts. SJM is still considered the top company in the Macau market, and they experienced the worst this week due to the global economic crisis.
SJM Holdings was down 26% early this week on the Hong Kong market. The Asian arms of the US gaming companies also experienced a sharp drop in stock price. Investors have caught on to the idea that the Macau government wants to diversify their revenue stream. Casinos are responsible for a majority of the economic growth in Macau over the past decade.
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