• 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
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Slowing China GDP threatens Macau GGR growth: analysts

Aug 28, 2018 Newsdesk Latest News, Macau, Top of the deck  


Slowing China GDP threatens Macau GGR growth: analysts

A slowing Chinese economy is looming as a potential hindrance to short-term growth in gross gaming revenue (GGR) for Macau’s casinos, according to new research by a global research team at brokerage Sanford C. Bernstein and Co LLC.

The big-picture report, released on  Tuesday, reiterated the institution’s forecast of a deceleration in Macau GGR this half – with the trend likely to be most pronounced in the fourth quarter – but foresaw positive growth overall.

The brokerage’s report – “What Slowdown? Identifying and Sizing (or Denying) the Slowing of the Chinese Economy” – attempted to quantify the outcomes from a sharp slowdown in the mainland Chinese economy this year. The report considered the overheated mainland real estate market and a series of indicators reflecting declining economic performance. It added that GGR performance in Macau was correlated with such factors.

Sanford Bernstein said new measures taken by the mainland government to stimulate economic growth would offer no positives for the Macau gaming industry unless they made the wealthy more confident about spending their money.

The brokerage detected threats in the short run to the sustainability of high rates of growth in mass-market GGR, although it forecast a brighter long-term outlook. The report suggested the threats to growth in mass-market GGR would create headwinds at the upper end of the gaming market – namely the premium mass segment, known for high bet multiples but for play via cash rather than on the credit used by VIPs – for the next year or so.

But the report advised investors to bear in mind that – in the brokerage’s view – Chinese gross domestic product would keep growing at an annual rate somewhere roughly around 5 percent; that the mainland economy would continue to shift towards greater consumer spending; and that the number of Chinese becoming wealthy enough to visit Macau would keep growing.

Potential hindrances to the casino business in Macau included: weaker-than-forecast performance by the supporting mainland economy or elements of the economy; changes in Chinese consumer attitude to casino gaming; and the amount of action taken in mainland China and Macau to counter corruption.

In another report issued this month, Sanford Bernstein said the number of investigations of suspected corruption had recently shown an upward trend in China, and that this might hamper the casino business in Macau this year and next. That report also predicted GGR would slow this year and into next year.


  • tweet
Related articles
  • Macau March GGR up 247pct y-o-y, to US$1.6bln: govt
    Macau March GGR up 247pct y-o-y, to...

    Apr 01, 2023  

  • Macau 2023 GGR at 45pct of pre-Covid level: Moody’s
    Macau 2023 GGR at 45pct of pre-Covid...

    Mar 31, 2023  

More news
  • Some Macau hotels say no rooms vacant 3 days of Easter
    Some Macau hotels say no rooms vacant 3...

    Mar 31, 2023  

  • Ainsworth updates deal for distribution of online RMG
    Ainsworth updates deal for distribution...

    Mar 31, 2023  


Latest News

Macau March GGR up 247pct y-o-y, to US$1.6bln: govt

Macau March GGR up 247pct y-o-y, to US$1.6bln: govt

Apr 01, 2023  

Macau’s casino gross gaming revenue (GGR) was up 246.9 percent year-on-year in March, to just under MOP12.74 billion (US$1.58 billion). The March tally was up 23.4 percent month-on-month,...
Read More
Some Macau hotels say no rooms vacant 3 days of Easter

Some Macau hotels say no rooms vacant 3 days of Easter

Mar 31, 2023  

Macau 2023 GGR at 45pct of pre-Covid level: Moody’s

Macau 2023 GGR at 45pct of pre-Covid level: Moody’s

Mar 31, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”Efforts have pivoted to the construction of the hotel tower, with plans to launch a soft opening before the end of 2024 and a grand opening in 2025”

Casino investor LET Group

On the development of a casino hotel in Manila, the Philippine capital



Most Popular

  • Some Macau hotels say no rooms vacant 3 days of EasterSome Macau hotels say no rooms vacant 3 days of Easter March 31, 2023
  • Japan govt delays IR decision due to local elections: reportJapan govt delays IR decision due to local elections: report March 30, 2023
  • Sands China ups ties to China showbiz giant Star CMSands China ups ties to China showbiz giant Star CM March 29, 2023
  • Macau 2023 GGR at 45pct of pre-Covid level: Moody’sMacau 2023 GGR at 45pct of pre-Covid level: Moody’s March 31, 2023
  • Macau got 16k mainland package tourists in Feb reopeningMacau got 16k mainland package tourists in Feb reopening March 29, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us