These factors vary from country to country, with Australia, Malaysia and Macau covered in the sector. “Besides these immediate concerns, rated gaming firms face the challenge of managing large acquisitions or capital expenditure in uncertain regulatory, credit, and economic environments,” said Moody’s analyst Kaven Tsang.
Tsang added that operators in Macau have the dimmest prospects as incremental regulatory tightening on visits from the Chinese mainland and intensifying local competition have already put pressure on some issuers’ profit margins and cash flows.
Moody’s added that a gradual liberalization of gambling in Taiwan, Thailand, Vietnam, and Japan and the coming online of integrated gaming resorts in Singapore, the Philippines, and Indonesia from 2010 offer potential regional competition.