Macau scores record gaming take in 2009, despite recession and visa curbs
Macau’s casinos achieved record gross gaming revenues of MOP119 billion (US$14.9 billion) last year, an increase of around 9.4% on the previous year, according to preliminary figures reported in early January.
In 2008, the casino sector generated gross receipts of MOP108.8 billion (US$13.6 billion)—a year on year increase of 31% compared to 2007, which in its turn recorded a 46.6% rise on 2006 receipts.
Macau’s annual growth for 2009 would undoubtedly have been higher than 9.4% were it not for the combined effects of lingering global recession in the first half of the year and visa restrictions by the Chinese authorities.
December’s casino gross receipts amounted to MOP11.3 billion (US$1.4 billion), an increase of 47.6% year-on-year according to the unofficial figures quoted by Lusa, the Portuguese-language news agency.
SJM Top Dog in Year of Ox
Dr Stanley Ho’s Sociedade de Jogos (SJM) continued to have the largest gross gaming market share of all the six operators in 2009, despite the investor uncertainty caused by the founder’s prolonged illness.
In December, when Dr Ho made his first public appearance in five months at the celebrations to mark the 10th anniversary of the handover of Macau from Portuguese to Chinese administration, SJM recorded around 30% of all gross gaming receipts, according to unofficial figures quoted by Lusa.
That meant SJM achieved an average share for 2009 of approximately 29.25%. The company also boosted its market coverage during the year, increasing the number of casinos either licensed or directly managed by the company from 19 at the beginning of the year to 21 at the end of it, representing nearly 62% of all casinos in Macau.
The SJM-licensed L’Arc casino opened in downtown Macau in September and SJM’s own Casino Oceanus near the Macau Maritime Ferry Terminal became Macau’s 34th legally licensed casino when it opened in mid-December.
Las Vegas Sands Corp (LVS) posted a 23% share in the final month of 2009, giving it an average for the year of around 23.5%. Michael Leven, LVS’s Chief Operating Officer, said in October prior to the successful flotation of Sands China on the Hong Kong bourse, that the company hoped to have its suspended Cotai plots five and six ready by June 2011.
Wynn Macau registered around 15% in Macau market share for December, producing an annual average segment of 14.75%. Wynn will be hoping to improve its slice of the action in 2010 when it opens its VIP-focused extension to Wynn Macau, branded Encore Macau—probably on 1st April.
Melco Crown Entertainment (Nasdaq: MPEL) was fourth for share in December, with around 12%. MPEL showed the biggest improvement for the year following the opening of its City of Dreams integrated resort at the beginning of June. The company leapt from a 9% share in June to 18% in July, though it fell back gradually in the second half of the year, producing an annual average of 12.25%.
Galaxy Entertainment Group (GEG) remained steady with 11% in December, producing an 11.41% average for 2009. It will be looking to improve its position in the next 18 months after announcing it will open its mothballed Galaxy Macau integrated resort on Cotai in the first quarter of 2011.
MGM Grand Macau peaked at 12% in July, before slipping back in the rest of the year, recording a share of just under 9% in December, producing an 8.58% average for the year.
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