Hoped for a pop after WYNN reported its earnings, but stock is having a reverse reaction, flushing down. What happened to their all new Wynn Palace? View attachment 4732
The Big 4 as been taking on the chin as of late. It could be on tighter control of money flowing in on the money laundering platform...Stay tuned. . .
Macau govt push for mass play, non-gaming a plus: IMF http://www.ggrasia.com/macau-govt-push-for-mass-play-non-gaming-a-plus-imf/
They are a rock-in on the Hong Kong exchange tonight led by Melco (MPEL) up almost 8%. Something's up (They never release news until the following morning)
This appears to be today's driver Brokerage Sanford Bernstein noted in its Monday report that – regarding recovery of the city’s casino GGR after more than two years of year-on-year retreat – “Macau’s inflection is in full swing”. The institution predicts 7 percent year-on-year casino GGR growth in the fourth quarter, with growth also in 2017. “We forecast fourth-quarter GGR of 7 percent year-on-year growth (led by 15 percent year-on-year mass growth) driven by the ramp up of four newly-opened projects (since May 2015) and slowing modest declines in VIP (and VIP could surprise on the upside),” said analysts Vitaly Umansky, Zhen Gong and Yang Xie, in their 54-page report carrying Monday’s date. http://www.ggrasia.com/non-gaming-never-key-to-macau-casino-take-bernstein/
China Casinos Rise On Upgrade: 2017 VIP Recovery, CS Says Credit Suisse on Monday upgraded a slew of casino-resort operators with business in China saying consolidation of the”junkets” system sending high rollers to the important gaming destination of Macau is “healthier.” http://blogs.barrons.com/emergingma...p-recovery-cs-says/?mod=yahoobarrons&ru=yahoo
Macau GGR up 14 pct Nov, fourth straight monthly rise * Revenue gains indicate Macau turning a corner after slump * Macau leader pushes theme parks, shopping over casinos * Govt to increase regulations on operation of VIP rooms HONG KONG, Dec 1 (Reuters) - The world's biggest casino hub of Macau posted a 14.4 percent rise in gambling revenue in November, a fourth month of growth after more than two years of decline, as new resorts helped bring in more casual gamblers to the southern Chinese territory. More mass gamblers and visitors have made their way to Macau after multi-billion dollar casino openings by Sands China Ltd and Wynn Macau Ltd in the third quarter, leading to a gradual pick up in revenues. However, VIP clients - seen as high-rollers - continued to stay away amid Beijing's campaign against graft and shows of wealth by public officials. A specially administered region of China, Macau is the only place in the country where casino gambling is legal. In November, the casino hub raked in a revenue of 18.8 billion patacas ($2.36 billion), government data showed on Thursday, at the top end of analyst expectations for a 10-15 percent rise. The figure was a drop from the previous month, when revenue had been boosted by a national holiday week. Visitors and overnight tourists to Macau have increased in recent months and while analysts have mostly called a bottom to Macau's gaming revenue, some remain cautious on the sustainability and pace of the recovery for operators Sands China, Wynn Macau, Galaxy Entertainment, MGM China , Melco Crown and SJM Holdings Gross gaming revenue for Macau casinos is expected to be flat to up 10 percent next year, versus an estimated 3-6 percent drop this year and a sharp drop of 34 percent in 2015, said Sophie Lin, a credit analyst at S&P global ratings. "The opening and ramping up of new casinos, better infrastructure connecting Macau with mainland China, and stabilizing regulations are the major factors that will fuel a rebound in the gaming industry," Lin added. Macau's GDP grew 4 percent in the third quarter, the first positive growth recorded over the past two years, Macau's Statistics and Census Bureau said in November. Macau's chief executive, Fernando Chui, has previously said the gambling hub needs to do more to boost family tourism including building a theme park, in line with the government's efforts to rebrand Macau as a more mass-market destination. The government will, however, continue to increase regulations on the operation of VIP rooms and promote responsible gaming, Chui has said at the time. Macau's VIP industry is mostly managed by middle men, casino junket operators acting on behalf of multi-billion dollar casinos. But since 2014, their business has been hit hard with Chinese President Xi Jinping implementing an anti-graft campaign. Prior to 2014, revenue from VIP gamblers made up over 70 percent of total revenues. Now it is just under half. http://finance.yahoo.com/news/macau-gambling-revenue-4th-month-051525456.html
Even though the Macau number were better than expected, I believe the Big 4 are down on "Govt to increase regulations on operation of VIP rooms"
There are now non-stop flights from China to Vegas that should add to the 200,000 Chinese visitors that made the trip this year. The Department of Commerce estimates Chinese travelers spend $6,000 to $7,000 per person, per trip, ranking the Chinese as the highest spending group of international visitors. This will benifit WYNN, LVS, CZR, with MGM being the biggest benifactor
Makes sense that they spend more than anyone else when they go to Vegas. If you're planning on making the trip from that far away, you're probably willing to drop some money while you're there! But damn, $6K-$7K per person, that's crazy.
Not sure if this is what is dropping the Big 4 but the junkets are a big part of their play even though they have leaned towards the mass market Macau govt eyes US$25mln in taxes from junkets in 2017 http://www.ggrasia.com/macau-govt-eyes-us25mln-in-taxes-from-junkets-in-2017/
