Macau casino revenue rose 3.2 percent to reach a record last month as promotions over the eight-day Golden Week holiday attracted more Chinese tourists to the world’s biggest gambling hub.
Casino revenue in the Chinese city increased to 27.7 billion patacas ($3.5 billion) in October, topping a record 26.85 billion patacas in the same month a year earlier, according to data from Macau’s Gaming Inspection and Coordination Bureau today.
Gambling revenue is back to an all-time high as casino operators including Sands China Ltd., Galaxy Entertainment Group Ltd. and Wynn Macau Ltd. ramp up expansion in the only place in China where casinos are legal. Middle class Chinese tourists, or the so-called mass market, have helped shore up growth even as high-stake bettors have cut back in a weaker economy.
“The numbers are better than my expectations,” said Edwin Fan, a Hong Kong-based analyst at BOC International Group, who estimated growth of less than 3 percent. “That was due to a faster and stronger ramp-up from Sands’ latest property in Cotai.”
Sands China opened the second phase of its latest Cotai Central resort on Sept. 20, ten days ahead of the Golden Week holiday.
Citigroup Inc. last month cut its estimate for revenue in October to 27.5 billion patacas from 28 billion patacas. Sands China, controlled by billionaire Sheldon Adelson, jumped 2.9 percent to HK$30 at the close of Hong Kong trading, Wynn Macau gained 2.7 percent, Galaxy rose 1.3 percent, MGM China Holdings Ltd. added 1.3 percent and SJM Holdings Ltd. climbed 0.8 percent.
Revenue in the gambling hub rose 12 percent to 23.9 billion patacas in September. Gaming revenue rose 1.5 percent in July, the slowest pace since 2009, after a typhoon and a pullback by high rollers hurt spending in the territory.