• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Las Vegas to gain from direct China flights: analyst

Apr 29, 2016 Newsdesk Latest News, Top of the deck, World  


Las Vegas to gain from direct China flights: analyst

Las Vegas “could find some reprieve in its struggling baccarat business” with the help potentially of three direct flights per week from China, says a note from Union Gaming Securities LLC.

According to the brokerage, the Civil Aviation Administration of China has approved that country’s Hainan Airlines to operate three direct weekly flights from the Chinese capital Beijing to Las Vegas. The carrier, based in Hainan’s principal city Haikou, plans to begin the flights in September but still needs approval from the U.S. Department of Transportation, said Union Gaming.

“The approval [from Chinese authorities] is a major first step in potentially bringing even more Chinese carriers to Las Vegas,” said analyst John DeCree in a note on Thursday. “The direct flights from China to Las Vegas would create incremental visitation, increased frequency, and length of stay.”

Conservative estimates suggest about 300,000 Chinese travellers are visiting Las Vegas annually, according to Union Gaming’s note. These visitors however have to take more than one flight and as a result are likely to spend less time in Las Vegas. “This limits how much time and money a Chinese tourist could spend in Las Vegas,” said Mr DeCree.

Hainan Airlines, China’s fourth largest carrier, is expected to operate a Boeing 787 Dreamliner on the Las Vegas service, according to an announcement released on the website of the Civil Aviation Administration of China in October. According to the aircraft’s manufacturer, variants of the Boeing 787 seat between 242 and 335 passengers.

“Direct flights would allow Chinese travellers to spend more time in Las Vegas and ultimately spend more money. Second, incremental flights and carriers would likely follow suit after the first three flights begin,” said Union Gaming’s Mr DeCree.

He added: “While we expect international visitation will continue to expand, the direct flights from China and a potentially recovering baccarat business on the [Las Vegas] Strip represent upside to our current outlook.”

Weak baccarat volume

Nevada gambling revenue fell 3 percent year-on-year in March due to lower winnings in the Las Vegas area, show data from the Nevada Gaming Control Board.

The Nevada Gaming Control Board said on Thursday that the state’s casinos recorded revenue of US$922.3 million in March.

More than US$486.8 million – about 53 percent – of Nevada’s total gaming win in March came from the Las Vegas Strip. The Strip’s revenue was down 4.0 percent from the prior-year period.

“The [Strip] results were, impacted by: 1) weak baccarat volume; (2) February 2015 ended on a Saturday, so March 2015 benefited from slot revenue timing; (3) last year had an extra Sunday; and (4) Easter timing this year,” said analyst Cameron McKnight of Wells Fargo Securities LLC.

March baccarat volumes were down 29 percent year-on-year on the Las Vegas Strip, while revenues were down 3.9 percent year-on-year. Baccarat is the table game of choice for Chinese and many other East Asian gamblers.

Overall, gross gaming revenue on the Las Vegas Strip in the three months to March 31 was down 1.6 percent from the prior-year period, “as slot handle dipped 2.2 percent … and table drop excluding baccarat was down 6.9 percent,” said a note from Deutsche Bank Securities Inc.

“Baccarat remains weak, as first quarter 2016 baccarat drop fell 16.9 percent year-on-year and revenue was down 11.6 percent as hold tempered the damage,” said Deutsche Bank’s analysts Carlo Santarelli and Danny Valoy.


  • tweet
Related articles
  • Phase 2 Resorts World Sentosa only starts 2022: analyst
    Phase 2 Resorts World Sentosa only...

    Feb 24, 2021  

  • IGT US$1bln sale in Italy aids valuation: Union Gaming
    IGT US$1bln sale in Italy aids...

    Dec 09, 2020  

More news
  • Casino surveillance biz decline leads Synectics to annual loss
    Casino surveillance biz decline leads...

    Mar 03, 2021  

  • Casino op Genting Malaysia pay cuts March-May: reports
    Casino op Genting Malaysia pay cuts...

    Mar 03, 2021  


Latest News

Casino surveillance biz decline leads Synectics to annual loss

Casino surveillance biz decline leads Synectics to annual loss

Mar 03, 2021  

Surveillance technology specialist Synectics Plc, an equipment supplier to the land-based casino industry in Asia-Pacific including in Macau and Singapore, reported a consolidated loss of nearly...
Read More
Casino op Genting Malaysia pay cuts March-May: reports

Casino op Genting Malaysia pay cuts March-May: reports

Mar 03, 2021  

IGT quarterly loss doubles sequentially 4Q as revenue dips

IGT quarterly loss doubles sequentially 4Q as revenue dips

Mar 03, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

“As a leaner, stronger company, we expect leverage to return to pre-pandemic levels in the next 12-18 months”

Max Chiara

Chief financial officer at gaming product and lottery services provider International Game Technology



Most Popular

  • Galaxy Macau to add Raffles-branded hotel towerGalaxy Macau to add Raffles-branded hotel tower March 1, 2021
  • Macau casino GGR down 9pct m-o-m in February: govtMacau casino GGR down 9pct m-o-m in February: govt March 1, 2021
  • Melco’s Lawrence Ho hopeful on Macau recovery in MarchMelco’s Lawrence Ho hopeful on Macau recovery in March February 26, 2021
  • Covid-19 test cert no longer needed for Macau casino entryCovid-19 test cert no longer needed for Macau casino entry March 2, 2021
  • Macau VIP challenged by changes in China: Galaxy Ent bossMacau VIP challenged by changes in China: Galaxy Ent boss February 25, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us