asino revenue at the world’s biggest gambling hub may increase to about us$ 2.1 billion in July, 21 %, CLSA’s Aaron Fischer and Huei Suen Ng and Deutsche’s Karen Tang said in notes to clients. June revenue fell 20 % from May as the World Cup kept some gamblers away from the only place in China where casinos are legal.
Police in Hong Kong, an hour’s ferry ride from Macau, have seized records of us$ 46 million worth of illegal bets on World Cup games, the South China Morning Post reported July 17. Revenue for Macau’s casino operators has surged this year as junket operators, who bring high-stakes gamblers to the city as well as lend money and collect debts, have benefited from a credit boom in China.
Galaxy Entertainment Group. climbed 4.4 % in Hong Kong trading while the broader Hang Seng Composite Index rose 1.2 %. The stock has gained 40 % this year.
The end of the World Cup on July 11 and the start of the summer holidays boosted Macau’s revenue in the first 19 days of July, the CLSA analysts said. “These numbers are expected to accelerate through until end of the month.”
A “strong increase” in the size of bets placed by high- limit gamblers drove an 80 percent increase in casino revenue in the first 19 days of July, Tang said in a note to clients today. “July is on track for around us$ 2 billion in gaming revenue,” she said.
Macau gambling revenue rose 67 % in the first six months of the year to us$ 10.5 billion, according to data on the city’s Gaming Inspection and Coordination Bureau website. SJM Holdings, controlled by billionaire Stanley Ho, gained 1.6 % in Hong Kong, extending its gain to 53 % this year. Wynn Macau Ltd. advanced 2 %.
Sands China, Asian biggest casino operator by market value, fell 0.9 %. Melco International Development, which has a casino venture with Australian billionaire James Packer’s Crown, gained 1.9 %.
Deutsche’s Tang said SJM was her top pick among Hong Kong- listed Macau casino operators. CLSA’s Fischer and Ng selected Sands China Ltd., Wynn Macau and SJM.