Inside Asian Gaming

INSIDE ASIAN GAMING SEPTEMBER 2018 18 COVER STORY T WO years into its recovery, Macau may be running out of steam. Gross gaming revenue growth decelerated in the second quarter, with May and June GGR falling short of estimates, followed by a lackluster July. Investors have sold down Macau gaming stocks and analysts have reduced price targets on some operators’ shares. Despite these signs of impending difficulties, most analysts contend Macau’s long-term outlook remains rosy – just as they did ahead of the 2014 downturn that lasted 26 months and knocked GGR back by 38% before growth resumed in August 2016. As in 2014, lower VIP growth is leading the slowdown, but things may be different this time, the experts say, because high-end contraction is less the root of the problem than a symptom of the long-term solution. “While Q1 2018 (and 2017) revenue growth was enhanced by As in 2014, lower VIP growth is leading the slowdown, but things may be different this time, the experts say, because high-end contraction is less the root of the problem than a symptom of the long-term solution. Mass market gaming is driving Macau’s future momentum