Outlook improves, but China remains in driver’s seat

Macau got off to a good start in January, with GGR in the initial weeks higher than expected, though few expect any return to the stellar growth rates of the past, with China still likely to be the driving factor for casino operators. Beijing’s crackdown on corruption triggered a two-year slump in gaming revenue and going forward the performance of its economy, efforts to control capital outflows and its ongoing fight against graft will all play a role in determining the strength of the local gaming market. “The Macau gaming industry insofar as we are concerned is a political market rather than a free demand vs supply equation, and what we will get here is what China deigns to let us have,” said Ben Lee, managing partner IGamiX Management & Consulting. “A single digit growth in line with China’s own economic growth will probably be our guide.” GGR fell 3.3 percent in...

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