Casino revenues in Macau continue to plummet, raising serious concerns for casinos and shareholders every month. Stenage CRT reports that casinos had a rough month in June, with bulk revenues dropping to 33.3% compared to June 2014. The figures confirm that the drop in revenues in June 2015 was the biggest drop in Macau's casino industry history.
VIP rolling chip sales also fell 52.5% to their lowest level since March 2010. The report also said mass sales were at their lowest level since September 2012. However, amid all the despair and depression the casino industry has experienced over the past 12 months, a ray of hope appears to be on the horizon.
Stern Age CRT confirmed that total gaming revenue (GGR) remained positive for the Macau casino industry in June 2015 at -36.2%, as June received "less bad" results for the fourth consecutive month compared to early 2015. Stern Age CRT analyst David Bain, who wrote the report, said he expects the Macau casino industry to continue to improve and believes this will continue into the end of the year. 홀짝게임
The Macau government recently eased restrictions on visa laws, allowing more mainland Chinese to cross the border into Macau. This is the first time that the Macau government has relaxed any norms for the struggling casino industry. Analysts believe that the Macau government is finally making some modifications to help the casino industry recover. As the Macau government loosened visa laws, the stock prices of most of Macau's major casinos soared, with the rise of Chinese gamblers automatically allowing more business at Macau casinos.
The $2.6 billion expansion of the Galaxy Macau casino has yet to make a significant difference to the market, but David Bain has had encouraging signs for the casino industry and investors believe it will be even more positive. "The Galaxy Mass market share rose from 16.5% to 19.3% in June and May, while VIP rose from 25.5% to 27.1%," David Bain said in a statement. In our view, the results show the new property expansion design dynamics (better suited to the mass than VIP) and the Macau government's table allocation. Investors are optimistic about future improvements due to new supplies, with the summer travel season currently underway, and transfer visas increasing from 5-7 this month."
Sterne Agee CRT estimates that Macau's GGR growth in July will range from about minus 30% to 34%.
