MACAU: A BRUTAL JANUARY

The impact of Rolling Chip credit crunch is now very apparent. The South China Morning Post cited a government source in reporting that gaming revenues fell 30% in January 2009 vs. January 2008. January will be the first of many months of significant declines as the junkets flooded the market with credit last year. Of course, the mass market segment is not there to pick up the slack as significant visa restrictions remain in mainland China.

WYNN and LVS are the two US operators most exposed to Macau. As we’ve been forecasting in our posts, both are likely to report disappointing Q4s in the coming weeks and estimates are coming down. Invest at your own peril.