Macao sees bump in gambling revenue

Source:Reuters Published: 2012-9-3 23:40:04

Gambling revenue in Macao grew 5.5 percent year-on-year in August, government data showed Monday, signaling a muted pick-up in growth buoyed by demand from mainland gamblers.

August revenue of 26.14 billion patacas ($3.27 billion) was the highest for a single month this year and compared to 24.78 billion patacas in August last year. The highest revenue intake was recorded in October 2011 when Macao took in 26.85 billion patacas.

While Macao was one of the world's fastest-growing economies in 2011, an economic slowdown in the mainland that has rippled across industries from the country's vast manufacturing sector to the property market has started to seep into the casino-studded enclave.

August's data came in at the lower end of forecasts with analysts expecting growth of between 7-9 percent. Macao is the only place in the country where mainland nationals can legally gamble in casinos.

Michael Ting, an analyst at CIMB Group in Hong Kong, said revenues from the mass market segment, made up of China's aspiring middle class, were still strong while the lucrative VIP market seems to be stabilizing.



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