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Parisian Macao
| August 3rd, 2016 at 2:16:19 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |   Wynn Palace, in the Cotai area of Macau will open in just 3 weeks on August 22, 2016. The Sands Parisian Macao is opening in 6 weeks. Macao just reported it's 26th straight month of dropping gaming revenue. Wynn Macau has beaten the overall odds and managed to level off YoY revenue Resort Q2 2016 Revenue Change YoY Wynn Macau $639.3 million +3.6% The Venetian Macau $666.1 million (9.9%) Sands Cotai Central $472.7 million (14.7%) Sands Macau $185.0 million (23.4%) DATA SOURCE: LAS VEGAS SANDS AND WYNN RESORTS EARNINGS REPORTS. YOY = YEAR OVER YEAR. |
| August 3rd, 2016 at 3:38:49 AM permalink | |
| Fleastiff Member since: Oct 27, 2012 Threads: 62 Posts: 7831 | Anyone ever do a census of Macao gamblers? In Vegas, a casino has con men, hookers, drug dealers, chip thieves, all types of gamblers including newbies, drunkards, etc. In Macao, I would fear its only: Corrupt officials too high to have to worry, low level corrupt officials, and factory owners who drive their employees to suicide. so the question is: how many gamblers will survive the various People's Purges to still gamble in Macao? Or, as usual, do I paint too stark and unrealistic a situation? Are there really middle class honest upright gamblers in Macao? |
| August 3rd, 2016 at 9:01:04 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Baccarat (normal and VIP) represents 88% to 91% of the gaming revenue in Macau. So if we assume most of the dodgy play is VIP baccarat, it gives us some indication. In 2011 the VIP baccarat revenue was 4X that of regular baccarat. Four years later the ratio was reduced to 1.68X. But VIP baccarat is still over half the gaming revenue in Macau. Let's keep in mind that 2015 regular baccarat play generated was almost $10 billion, which is still considerably larger than the total gaming revenue of the Las Vegas Strip. Since there are fewer visitors to Macau than to Vegas strip it gives you an idea of how much they gamble. Also the drop in the first 7 months of 2016 has already been another 10.5%. 76,212 MOP million* = $9.537 billion USD
The Chinese government seems to have no problem with the expensive hotel rooms or high priced restaurants. They even seem to encourage it. The government is not a returning to the ideology of the Great Proletarian Cultural Revolution.
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| August 3rd, 2016 at 1:24:56 PM permalink | |
| Fleastiff Member since: Oct 27, 2012 Threads: 62 Posts: 7831 | No, I did not think China was going to return to the Great Proletarian Cultural Revolution. It is often said that in China the future is more certain than the past. I merely think that at some point those who collect taxes but gamble them instead of paying them to the Chinese Treasury will eventually come to the attention of higher level Tax Thieves. Factory owners who drive employees to suicide will probably be tolerated, but taxed. They can gamble their earnings. I think your comparison of VIP versus Ordinary Casino Floor Baccarat is probably a good measure but of course it is not a precise one. I just wonder if senior official do crack down on endemic corruption how much of Macau's money will remain once the bubble bursts? |
| August 4th, 2016 at 2:28:03 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Your phrase "once the bubble bursts" seems wildly understated. Macao has already had a drop in revenue that makes Atlantic City's crash seem insignificant. If there is a further bust I imagine it will eventually may bring down Wynn Resorts and possibly Sands Corporation. The ratio of VIP to regular Baccarat was actually much higher in the early years (as high as 7:1). But when VIP baccarat revenue almost reached $30 billion, the new President of China felt it had to stop.
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| August 4th, 2016 at 3:25:55 AM permalink | |
| Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 |
Wynn is at $97.66 now, so the market seems somewhat less worried about the Wynn Palace opening. I read that they only have 100 tables instead of the 500 which they asked for.
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