THE M3: OCT GGR; CHINA INFLUENCE; WYNN-OKADA

THE MACAU METRO MONITOR, NOVEMBER 1, 2013

 

 

OCTOBER GGR DICJ

Macau gross gaming revenues reached 36.477 BN MOP (35.415 BN HKD, 4.568 BN US$), up 31.7% YoY. 

 

INVESTING IN MACAU CASINOS FINALLY STARTS TO LOOK LIKE A GAMBLE WSJ

The risks of changing China visa policies and shifting tourism trends should also be taken into account by investors. The biggest unpredictable factor for gambling stocks in Macau is still the Chinese government, and investors seem to be underestimating the risk. 

 

Signs that Beijing could add restrictions are detectable. The government seems frustrated that Macau hasn't moved beyond gambling to offer leisure and entertainment activities that might appeal to families world-wide, not just hard-core gamblers from China.

 

One reason Macau casino stocks have thrived this year is what hasn't happened. Even amid an austerity campaign in China, Beijing has made no move to cut off the flow of Chinese gamblers to the city.  But Macau stocks deserve a discount because they effectively operate at the whim of Beijing, which can block the flow of customers at any time.

 

The peak-time minimum bet at mass-market tables has more than tripled in the past two years, to $125 from $40, much higher than at peers such as Las Vegas ($20), the Philippines ($7) and Singapore ($50).

 

WYNN-OKADA LAWSUIT HALTED SIX MONTHS FOR CRIMINAL PROBE Bloomberg 

WYNN's lawsuit against its former director Kazuo Okada was halted for six more months so the U.S. can continue to investigate possible bribery of Philippine officials by the Japanese billionaire.  Nevada state court Judge Judge Elizabeth Gonzalez in Las Vegas granted the Justice Department’s request for a second six-month stay of the civil case so that the government can pursue the criminal probe unhindered.


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