Macao’s Casinos’ New Resorts Help the Gaming Industry’s Recovery
Integrated resorts help in recovery
Sands Parisian opened its resort in September 2016, and it’s been leading the mass market recovery in Macao ever since.
Wynn Resorts (WYNN) opened its $4.1 billion Wynn Palace on August 22, 2016, and it’s expected to have contributed to August’s recovery.
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Given the fact that Macao’s revenue growth in the past five months has coincided with the openings of these integrated resorts, analysts are attributing the region’s recovery success to these resorts.
New resorts lined up
Overall industry capacity rose ~60% in 2016, with key players contributing more than $28 billion to the developing Cotai Strip. This trend is expected to continue in 2017, with more resorts lined up. These openings are likely why the Cotai Strip is integral to casinos’ recoveries.
MGM Resorts (MGM) is expected to open its $3.1 billion MGM Cotai in early 2017. SJM’s resort is also expected to open in mid-2017. The Galaxy’s Phase 3 and 4 projects may open in 2018.
How critical are new resorts?
The impact of these new resorts will be critical to determining Macao casinos’ success in 2017. So far, these resorts have helped to turn the tables for casinos’ market shares. Sands China, Wynn Resorts, and Galaxy Entertainment, which have opened new resorts, lead the pack, while MGM China and SJM are lagging behind.
These new resorts are expected to contribute to the region’s positive revenue trend in 2017. Wynn Resorts, Melco Crown Entertainment (MPEL), Las Vegas Sands (LVS), and MGM Resorts (MGM) are some of the major casinos in Macao.
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