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Casino company earnings and cash flow should improve over the next 12 to 18 months, especially as visitor numbers continue to recover after the pandemic in Macau, a report by Moody's Ratings said Monday.
But the agency says the outlook for casino jurisdiction in other Asian regions is less clear due to reports that Beijing has encouraged mainland residents not to gamble abroad.
Moody's, however, observed that Singapore's Resorts World Sentosa and Marina Bay Sands Casino are dual-run, and that Malaysian Resorts World Genting's monopolies are likely to be at lower risk from these factors than elsewhere in Southeast Asia, including Cambodia. It analyzed that this is because Singapore is proportionately more exposed to Chinese tourism, and its casino resorts have many non-gaming attractions.
"Macao's annual gross gaming revenue (GGR) is expected to reach 75% to 80% of pre-pandemic levels in 2019 over 2024 and 2025, compared to 63% in 2023 and 14% in 2022," the report's author said
"The pace at which earnings will improve will slow down compared with a surge in 2023 after China ended pandemic border restrictions," they added of Macau, which operates the only legal casino game in China
The 2024 improvement will be "even though China's economic growth has slowed this year from last year."
Moody's noted that Macau GGR in the first quarter of 2024 was 75% of 2019 levels, with tourists arriving in the city up 79% year-over-year.
The agency said the public market sector's GGR for the first three months of the year was 110% of 2019 levels.
"We expect this figure to rise to 115% by 2025, with premium public market customers driving growth.
"In contrast, we expect strict regulation of junket operators in the Macau VIP gaming market to continue
BY: 슬롯사이트