Macau Sets All-Time Revenue High at $3.5 Billion
Analysts predicting a dramatic slowdown in gambling revenues may have to wait awhile longer as the gambling mecca set an all-time record with $3.5 billion in gambling revenues in October 2012.
Macau's Gaming Inspection and Coordination Bureau recently released numbers for October and the finally tally was 3% higher than October 2011, which was previously the high water mark for the world’s top gambling destination by revenue.
Macau passed the Las Vegas Strip in revenues in 2006 and hasn’t looked back.
To put the figures in comparison, the entire state of Nevada pulled in $10.7 billion in gambling revenues for all of 2012 -- a figure Macau might eclipse from just three months of business at its current pace.
Ironically enough, the blistering pace of growth in Macau in recent years meant that news of the all-time record was seen as a disappointment by man.
The 3% growth over October 2011 lagged against some predictions and October is seasonally one of the best months for Macau.
Double-digit percentage gains in growth could be a thing of the past as the market is approaching a saturation point just as more companies -- including US-based gambling giants such as Las Vegas Sands and Wynn -- continue to expand their operations in Macau chasing much needed profits.
Government officials in China have also become increasingly displeased at the high-profile success Macau’s gambling operations have achieved.
They have warned they may move to cut down on the credit lines and businesses of many of the junket operators that regularly send high-stakes baccarat players to the tiny island of Macau.
The gambling craze in Singapore seems to be slowing as well, leading some to question whether or not Macau and Singapore casinos will ever be able to become trip destinations such as Las Vegas or if their results will continue to be driven by revenues from gamblers -- a double-edged sword if gambling appetites cool or economic conditions worsen.