Breakingviews

Macau’s casinos worryingly reliant on high-rollers

November 3, 2014

A drop in big spenders could push Macau gambling revenue to its first annual drop on record. Forecasts for next year still seem too optimistic. If VIP gamblers shrink in number, the likes of Galaxy Entertainment and Wynn Macau would be especially hard hit.

Macau revenue drop augurs further slowdown

July 2, 2014

Online betting on soccer’s World Cup may have contributed to the first year-on-year drop in the enclave’s gaming revenue since 2010. Fewer high rollers and a credit card crackdown didn’t help. That’s okay as long as tourist numbers keep rising. But future growth may be bumpier.

China Macau tolerance won’t last forever

June 17, 2014

The scale of the transformation of this former Portuguese colony into China’s gambling den is extraordinary. Each year it creates the equivalent of a new Las Vegas in revenue. But Beijing will eventually exercise more sway over the house’s winnings. Glimmers are already evident.

Macau casino stocks have further to fall

May 14, 2014

A crackdown on the use of China UnionPay cards in the gambling enclave is the latest scare for investors. Restrictions on cash transfers will dent growth. Though casino stocks are down 19 pct since early March, earnings multiples still don’t leave much room for disappointment.

For a contrarian bet, try China’s Las Vegas

January 9, 2012

Macau was a winner in 2011. Gaming revenue grew 42 percent. As China gets richer, so will the garish, casino-filled enclave. An economic slowdown will hit casual gamblers, but high-rollers matter more. Macau will thrive as long China’s inequality and corruption go uncurbed.

A “Wynning” strategy of betting on VIPs

October 7, 2009

Top-tier casino operator Wynn has always bet on VIP gamblers. Now it is adopting the same approach with its stock market flotation. It remains to be seen whether this strategy can help justify its valuation premium.

Macau casino stocks are priced for perfection

February 28, 2014

A building boom will expand capacity in China’s gambling enclave. But to justify their valuations, casinos not only need to attract more punters but encourage them to spend more at the tables. Any slowdown in visitor numbers or increased competition could test excited multiples.