The Flip Side: Good News in Macau!

Macau Casinos are required by law to plant a money tree

Yesterday we had some sombre news, but here’s something to brighten your day! Casino revenue in Macau, the world’s biggest gambling hub, may grow as much as 40 percent this month to about $2 billion, according to Macquarie Securities Ltd.

Macau casino sales were HK$6 billion ($773 million) in the first 12 days of September, said Gary Pinge, Macquarie’s regional head for consumer and gaming research, in a note to clients today, citing unidentified people in the gambling industry. “If the market holds up for the remainder of September, it would represent 35 percent to 40 percent growth year on year,” he said.

Growth for the six casino operators in the former Portuguese colony is slowing because sales in the second half of last year were higher than in the first six months as the economy rebounded. Las Vegas Sands Corp., which derived 73 percent of 2009 revenue from Macau, in June forecast growth of more than 30 percent for the second half, slower than the 67 percent expansion in the first six months.

Casinos in Macau, the only place in China where they’re legal, may almost match August’s performance this month, Pinge said. “Macau’s gaming market is showing little sign of sequential slowdown,” he said. “Even August showed strong month-on-month growth in VIP gaming volumes.”

Macau has turned into an oasis for gamblers to try their luck in an exotic locale. While it might not have the infamy of Vegas, it certainly has the customer base. This might be your next gambling vacation location!