World Cup Set To Affect Macau Gambling Revenues
Revenues for Macau in May were below forecasts and only recorded a 9.3 percent increase. According to financial agency Credit Suisse the celebrations of the World Cup in Brazil could further dampen the party for Macau casinos in June. As with the 2010 World Cup billions around the globe will be glued to their television screens and will not have time to play a the casinos.
The forecasts are expected to be in the single digits and can be as low as 1-6 percent. The long term effect on Macau will not be too serious as traditionally most people watch the group stages which include many teams. As the competition progresses there are fewer games with more people returning to the casino tables.
Major players like that of MGM China CEO Grant Bowie conceded that such a scenario could occur but did not believe that the impact would be to serious on the long term revenues. Bowie said,” The impact caused by the World Cup, if there is one, is that customers may be allocating more time to watching the World Cup rather than travelling to Macau. This [distraction from gaming] will be a short term effect and we expect to see increased visitation after the event.”
In related news the Chinese Casino operator Melco Crown Entertainment tanked to the lowest price since September as Deutsche Bank AG and Wells Fargo & Co. cut their estimates for gambling revenues in Macau.