Wealthy tourists to push Macau casino growth in 2012

Wynn Macau led gains in Hong Kong-listed gambling stocks after Deutsche Bank raised its estimate for casino revenue growth in Macau to 25 percent this year on spending by wealthy Chinese tourists. Wynn Macau rose as much as 10.7 percent to us$ 3.06 after Karen Tang, a Hong Kong-based analyst for Deutsche Bank, raised her rating on the stock to buy from hold. That’s the biggest intraday jump since October 27.

Revenue at the world’s largest gambling hub may rise as spending by VIP or high-stakes gamblers who can bet as much as us$ 250,000 a hand picks up, Tang said. Chinese visitors have fueled growth. “We turn from mild to very bullish,” after a trip to Macau, Tang, who previously forecast a 20 percent jump in Macau casino gambling revenue this year, wrote in a note dated March 12. “We think the market will be surprised by the recovery of VIP demand in the next few months.”

Billionaire Stanley Ho’s SJM Holdings, the world’s biggest casino operator by revenue, gained as much as 6.7 percent to us$ 2,09, the biggest intraday climb in six weeks. SJM’s 2011 revenue of us$  9.7 billion topped Las Vegas Sands Corp.’s us$ 9.4 billion and Caesars Entertainment’s us$ 8.8 billion, according to data compiled by Bloomberg.

Casino gambling revenue in Macau last year climbed 42 percent to us$ 34 billion, and grew 28 percent to us$ 6.31 billion in the first two months of 2012, according to the city’s Gaming Inspection & Coordination Bureau. Sands China climbed as much as 8 percent in Hong Kong trading, MGM China Holdings jumped as much as 6.4 percent and Galaxy Entertainment Group rose as much as 5.6 percent.

Wynn Macau traded at us$ 3,04, up by 10 percent in Hong Kong. Melco Crown Entertainment climbed as much as 1.5 percent before declining 0.6 percent to us$ 4,38.