• 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

Mass-market GGR sees MS pivot to ‘positive’ on Macau

Mar 06, 2019 Newsdesk Latest News, Macau, Top of the deck  


Mass-market GGR sees MS pivot to ‘positive’ on Macau

Morgan Stanley is “incrementally turning more positive” about gaming in Macau, basing its more optimistic view on expected growth in annual gross gaming revenue (GGR) this year. In a note issued on Tuesday, the stockbroking arm of the investment bank says it now expects casino GGR to grow by 1 percent in 2019, rather than shrink by 2 percent, mainly because it has raised its forecast of growth in revenue in the mass-market segment.

In January, the bank forecast that the combined effects of “tightened liquidity, [the] full smoking ban pressuring VIP and premium mass growth in 2019, and potential decline in earnings before interest, tax, depreciation and amortisation year-on-year growth in the first quarter of 2019” would impact on GGR.

Tuesday’s note said of shares in operators of Macau casinos: “We are incrementally turning more positive – leading macro indicators are suggesting GGR improvement from the second half of 2019. Some concerns – licence issues, slow GGR in the first half of 2019, and mid-cycle valuation – keep us from turning outright bullish.”

Morgan Stanley now thinks casino GGR in Macau’s mass-market segment will grow faster than it previously estimated – by 7 percent instead of 2 percent.

“While mass growth has slowed down to single-digit year-on-year growth in the first quarter of 2019, improving visitation could ensure continued mass growth over the medium term,” suggested analysts Praveen Choudhary, Jeremy An and Thomas Allen. Macau casino GGR in the first two months of 2019 was 0.5 percent less than in the corresponding period a year earlier.”

Morgan Stanley still expects casino GGR in the VIP market in Macau to shrink by 6 percent this year, constricted by the revised ban on smoking in casinos, by competition from casinos in Southeast Asia and by a crackdown on illegal underground banking.

Up to end-2018, VIP rooms were the only places in Macau casinos that had still been allowing smoking at the gaming table. Tableside smoking ended when new rules on smoking in casinos in Macau came into full effect in the new calendar year.

“Risk is also rising, with mid-sized junkets folding and ongoing consolidation at the top,” the note said.


  • tweet
Related articles
  • Macau casino 1Q EBITDA softer sequentially: MS
    Macau casino 1Q EBITDA softer...

    Apr 12, 2021  

  • Maybe only handful Macau junkets can survive: trade rep
    Maybe only handful Macau junkets can...

    Apr 01, 2021  

More news
  • GLI names new SVPs, VPs, promotes engineers across world
    GLI names new SVPs, VPs, promotes...

    Apr 14, 2021  

  • GEN Malaysia unit taps US$1bln in notes
    GEN Malaysia unit taps US$1bln in

    Apr 14, 2021  


Latest News

GLI names new SVPs, VPs, promotes engineers across world

GLI names new SVPs, VPs, promotes engineers across world

Apr 14, 2021  

Gaming technology compliance tester and consultancy, Gaming Laboratories International LLC (GLI), says it has promoted a number of executives, with James Maida, president and chief executive,...
Read More
GEN Malaysia unit taps US$1bln in notes

GEN Malaysia unit taps US$1bln in notes

Apr 14, 2021  

Macau seeks mutual vaccine recognition with Guangdong: CE

Macau seeks mutual vaccine recognition with Guangdong: CE

Apr 13, 2021  

Blackstone amends terms to Crown bid over gaming licences

Blackstone amends terms to Crown bid over gaming licences

Apr 13, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”It is the expectation of Blackstone that it will receive probity approval to acquire 100 percent of Crown from each of the state gaming regulators [in Australia] by third-quarter 2021”

Australian casino operator Crown Resorts



Most Popular

  • Three Manila casinos say still shut despite eased lockdownThree Manila casinos say still shut despite eased lockdown April 13, 2021
  • Macau casino 1Q EBITDA softer sequentially: MSMacau casino 1Q EBITDA softer sequentially: MS April 12, 2021
  • Macau seeks mutual vaccine recognition with Guangdong: CEMacau seeks mutual vaccine recognition with Guangdong: CE April 13, 2021
  • Philippines needs AML reform on casino biz: IMFPhilippines needs AML reform on casino biz: IMF April 12, 2021
  • Manila quarantine easing to April 30, casinos shut for nowManila quarantine easing to April 30, casinos shut for now April 12, 2021
Copyright 2014-2021 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us