Las Vegas casinos make a lot of money from their local entities. However, their performance in the stock market depends largely on events on the small island of Macau. This new high roller gambling hub has become a great revenue stream for Vegas casinos. High rollers from Europe and Asia frequent Macau on a regular basis, with the resorts and casinos there operating at the highest standard.
Unfortunately, the success in Macau has not been present over the past few months. There was another fall in monthly revenue when looking at figures from Macau casinos. This decline has been present ever since the summer. Remarkably, there was a close to 25% fall in revenue from September to October. Investors are beginning to think that Macau has peaked, with a decline the only future possibility.
Bigger Picture –
The month to month figures are a problem, and they represent a worrying trend with 2015 looming large. However, the overall 2014 figures are very positive. Macau has operated at a high level this year, with a 5% increase in revenue compared to 2013 (through October figures). Their total revenue for this calendar year is $49 billion. That is more than five times the amount made by Vegas casinos. This is the reason why casinos like the MGM, Wynn and Vegas Sands will continue to pump money into Macau.
There are three major parts in Macau, with Old Macau being the main area where gambling takes place. This location hosts casinos for both MGM and the Wynn Company. However, there is an expansion in other parts of Macau taking place right now. The coastal area, known as the Cotai Strip, is the spot where new casinos are being built. The Las Vegas Sands company owns most of the already constructed and future casinos in that area.