Macau Gaming Stocks On the Rise Again

Posted on April 5th, 2011

If you like a flutter on the stock markets as well as the tables, you’d be wise to look at Macau gaming stocks. Las Vegas and Atlantic City might be struggling, but they’re making hay on this side of the Pacific in the former Portuguese colony.

Gambling revenue jumped to a record high in March (traditionally a quiet month), powering aside concerns from investors and blowing away most analyst predictions.

Revenue surges over the 20 billion Paacas level for the 1st time last month, up 48 percent from a year earlier, according to the Gaming Inspection and Coordination Bureau.

Business in the Chinese city was fuelled by an increase in visitors from the mainland. Most analysts predict a 30 percent increase year-on-year.

Both the VIP (driven by big punters on baccarat) and the mass-market segments are surging ahead.  A 30 percent growth rate would drive Macau’s casino revenue to 245 billion patacas this year. Galaxy Entertainment opens a new casino resort on the Cotai Strip in May, which should continue to fuel growth.

Casino shares in Hong Kong perfomed better then the average yesterday: Wynn Macau jumped 10.% to HKD 23.70, posting a record high, while Stanley Ho’s SJM Holdings was up almost 9% at at HK$ 14.88.

Sands China, Sheldon Adelson collection of Glitzy palaces, went up 7% to HKD 18.48.  Melco International jumped 7 percent to HK$ 5.56, while Galaxy Entertainment Group rose 4% to close at HKD 11.92.

SHARE TIP: MGM China Holdings, the partnership between MGM Resorts International and Pansy Ho, will seek approval for an IPO from the listing committee of the Hong Kong stock exchange in April. they want to raise about US$ 1 billion in an IPO in May. Could be a good time to get into the action?


Related Posts

Harrah's Teams Up With 888. Is this the First Stage for the US Online Casino Market Opening Up?

One of the Las Vegas big casino gorillas, Harrah’s Entertainment (who own Caesar’s Palace in Las Vegas) has just announced that it is getting into bed with 888 for a UK launch of Caesar’s Casino online in the UK.  This...

Casino in Florida Refuses to Pay $166 million Jackpot

Here´s an interesting one for you. Who´s pulling a fast one here? We´ll let you decide.. A casino slots player in Florida: Bill Seebeck was certain he’d hit the jackpot. He claims the slot machine he was playing started...

Is Monte Carlo Coming To London? We Hope So!

London is fairly glamorous anyway, especially in the West End (apart from certain bits of Soho that is). But we have heard that the capital might be getting its own slice of Monte Carlo glamour right in the middle...