Casino company earnings and cash flow are expected to improve over the next 12-18 months as visitor numbers continue to recover post-pandemic, mainly in Macau, according to a Monday report from Moody’s Ratings.
But the outlook for casino jurisdiction in other Asian regions is less clear, the agency says, with reports that Beijing encourages mainland residents not to gamble abroad.
Moody’s, however, predicts that Singapore’s Resort World Sentosa and Marina Bay Sands casino monopoly and Malaysia’s Resort World Genting monopoly will be at lower risk from these factors than other parts of Southeast Asia, including Cambodia. This is because Singapore is proportionally less exposed to Chinese tourism and casino resorts have many out-of-game attractions.
The report’s author said: “Macao expects full-year gross gaming revenue (GGR) to reach 75% to 80% of 2019 pre-pandemic levels in 2024 and 2025, compared to 63% in 2023 and 14% in 2022.”
It also added of Macau, which operates the only legal casino game in China: “After China ends its pandemic border restrictions, it will see a slower rate of improvement in revenue compared to the surge in 2023.”
The 2024 improvement will come “even though China’s economic growth has slowed this year from last year.” 에볼루션 바카라사이트
Moody’s noted that in the first quarter of 2024, Macau’s GGR was up 75% from 2019 levels and tourist arrivals were up 79% year-over-year.
In the first three months of the year, the agency said the GGR in the public market sector reached 110% of 2019 levels.
“We expect this figure to rise to 115% in 2025 as premium mass market customers drive growth.
“On the other hand, we expect strict regulations on junket operators to continue to curb growth,” Moody’s said in the Macau VIP gaming market.