Casino executives in Macau are confident that the slowdown of recent years is behind them amid a broad recovery in luxury goods demand in China. Macau is the world’s largest gambling centre but revenues have declined sharply since 2014, when China’s corruption crackdown first began to hit the enclave, according to the Financial Times. The six casino operators in Macau have seen their combined market capitalization fall 46% since early 2014, wiping out $97.7bn of shareholder value. Gross gaming revenue – a key industry measure – started to grow again on an annualized basis in August after more than two years, amid reduced fears about the anti-graft campaign and the opening of a number of multibillion-dollar casino resorts. Fitch, the credit rating agency, expects gross gaming revenue to grow by 12% this year to $31bn, after peaking at $45bn in 2013 and falling to $28bn last year.
Categories