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Macau Revenue Rises to Record as Casinos Expand

Macau’s gambling revenue jumped 25 percent to a record in March as casino operators expand and add more hotel rooms to draw tourists from China’s mainland.

Revenue in the world’s largest gambling hub rose to 31.3 billion patacas ($3.9 billion) in March, topping the December high of 28.2 billion patacas, according to data from Macau’s Gaming Inspection and Coordination Bureau. That was higher than the median estimate of 30.5 billion patacas from seven analysts surveyed by Bloomberg News.

Revenue is climbing in the former Portuguese colony as operators including Galaxy Entertainment Group Ltd. and Sands China Ltd. expand on Macau’s Cotai area, Asia’s version of the Las Vegas Strip. Galaxy has received approval from the Macau government to add 50 gambling tables, Deputy Chairman Francis Lui said last month.

Sands China has been adding more hotel rooms under the Sheraton brand. It plans to invest at least $2.5 billion to build The Parisian, its fifth resort in Macau. Increased capacity at casino resorts encourages more gamblers to visit and stay longer, according to Bloomberg Industries analysts Tim Craighead and Brian Miller.

Business from both mass-market and VIP, or high-stake gamblers, has been strong, RBC Capital Markets analyst John Kempf wrote in a March 25 note.

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