Macau and Vegas on separate growth trajectories

While Macau’s gaming sector appears poised for long term recovery, the U.S. market will be seen trudging along with flat revenues, says Fitch Ratings.

"Macau gaming, now firmly at the bottom of the cycle, has better long-term prospects given investments in new supply, improvements in mass market indicators and under-penetration of gaming throughout the rest of Asia," said Alex Bumazhny, senior director, U.S. Corporates.

"In the U.S. the operating environment for regional casinos is benign at best, but a bit brighter on the Strip."

The ratings agency says it expects Macau gaming revenues to finish 2016 down 4 percent, before hitting mid-single digit growth in 2017.

In contrast, Fitch expects the U.S. market to see only flat revenues and a modest new gaming supply in 2017.

"With several years of major capex in the rearview mirror, many U.S. gaming companies will look to optimize their capital structures." says Bumazhny.

“The traditional casino model faces a turning tide, partly cannibalized by video lottery terminals, social gaming and instant-ticket lottery, and constrained by secular demographic headwinds but buoyed by growing employment and median wages,” said Fitch.

More news from this jurisdiction

Macau, ElsewhereMonday, Mar 19, 2018

Tom Light, senior vice-president of business development at SBTech, is to leave the group to establish a new business venture that will unite blockchain and gambling.

Elsewhere, Philippines, MacauWednesday, Mar 07, 2018

Sheldon Adelson featured in 21st position in Forbes annual ranking of the world’s billionaires, coming far ahead of other casino moguls.

Elsewhere, MacauTuesday, Jan 09, 2018

Casino operator MGM recently supported a University of Macau (UM) study tour to Las Vegas.

Elsewhere, Japan, Macau, South East AsiaWednesday, Nov 29, 2017

Spectrum Gaming Group says it predicts 2018 to be the most significant, with political, technological, demographic and regulatory changes expected for gaming markets around the world.

Elsewhere, MacauWednesday, Oct 25, 2017

Online and mobile casino content provider iSoftBet has a packed conference schedule to round off the year, and will set up shop at three of the industry’s largest events over the next two months.

Macau, ElsewhereThursday, May 18, 2017

Macau-based law firm MdME has announced the launching of its international gaming practice within the Lex Mundi network.

Macau, ElsewhereTuesday, May 09, 2017

MGM China reported a 7 percent gain in net revenue for Q1, driven mainly by an increase in main floor table game revenue due to a higher hold percentage.