Asia

Macau casino operators’ market value touches new heights

Published

6 years ago

August 1, 2018

Niji Narayan

Photo source: vibrant-holidays.com

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Macau’s casino operators are expected to build on a 13 per cent revenue growth (Credits: wanderluxe.deluxenomad.com).

The combined market value of six casino operators in Macau would touch US$146 billion by 2020, Morgan Stanley predicts in a newly released a note.

Morgan Stanley projects a 13 per cent revenue growth in compound annual growth rate (CAGR). The analysts in the firm also add that there could be some hurdles in the immediate feature and the casinos will have to overcome them to achieve the projected growth rate.

The biggest hurdle is going to be the license rebidding process. The competition from Japan and Hainan for Chinese gamblers is also a potential hindrance factor.

Morgan Stanley analysts noted: “In case of licence renewal, it could either have a negative monetary impact or outright loss of gaming profit. With the potential opening of Japan and Hainan, the pie could shrink meaningfully.”

Furthermore, the brokerage explained that US gaming stocks will more likely be in a better position to face any potential disruptions. However, Galaxy and Sands China are also expected to better handle any hurdles due to their size and higher margin.

Source: Focus Gaming News

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.