Macau casinos to expand on family push

The growth outlook for the gaming industry is promising while valuations are “undemanding,” said Mobius, the group’s executive chairman, after a visit to the Chinese city. Templeton will continue to hold and buy Macau gambling stocks, he said in an e-mail response to questions, declining to give specific recommendations. 

Casino operators in the former Portuguese colony have been adding shopping malls, spas and shows to woo middle-class family-oriented visitors who provide wider margins. Casino revenue in Macau, the only place in China where casino gambling is legal, jumped 14 % to us$ 38 billion last year. 

“We see continued growth in view of the gradual transformation from an emphasis on only gaming to an emphasis on general entertainment for the family,” Mobius said in the e- mail. “Macau and its surrounding areas will become China’s premier destination for leisure and entertainment.” 

MGM China Holdings, the Macau casino venture between MGM Resorts International and a daughter of gambling mogul Stanley Ho, jumped 3.9 % the close of Hong Kong trading. Melco Crown Entertainment closed 2.2 % higher. The benchmark Hang Seng Index dropped 1.1 %.