Macau's Growth Knows No Bounds

Macau had another great year in 2013, with gaming revenue growth up 18.6% to $45 billion. But can 2014 generate the same results? Erin Miller sat down with contributor Travis Hoium to discuss this in the video below. 

On the side of growth is fast-improving infrastructure that will transport gamblers from Mainland China as well as around Macau itself. Then there's the long-term driver of new resorts from Las Vegas Sands (NYSE: LVS  ) , Wynn Resorts (NASDAQ: WYNN  ) , Melco Crown (NASDAQ: MPEL  ) , and MGM Resorts (NYSE: MGM  ) on Cotai, which makes the area an even bigger attraction for the mass market. 

Sheer size is the downside. Eventually, Macau's growth will have to be more in line with that of China or other Asian countries. Find out more about Macau's future below. 

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  • Report this Comment On January 13, 2014, at 1:25 PM, spokanimal wrote:

    I was struck by this line above:

    "Sheer size is the downside. Eventually, Macau's growth will have to be more in line with that of China or other Asian countries.".

    While that is certainly true, I'm surprised, as Mr. Hoium slowly gathers knowledge about the gaming industry, that he would present such a prospect at all, given the trajectory of "maturation" of gaming in the region surrounding Macau.

    Gaming proliferation is something that is happening "slowly" in the far east. Only a very small percentage of the burgeoning Chinese middle class has ever even BEEN to macau, despite the trends for wealth and infrastructure. Japan and Taiwan don't even HAVE casino gaming yet.

    Even after the "proliferation" of gambling began in the U.S. with the first tribal venues in the 20th century, Las Vegas continued it's outsized, heady growth for decades before succumbing to the stagnant gaming revenues and altered emphasis toward non-gaming attractions.

    Given that gaming in the far east is at least 15 to 25 years away from leveling off to a growth rate that approximates the growth of the economies in general in that region...

    ... I'm amazed that Mr. Hoium would bring it up as anything that anyone would want to fret about.

    As this contributor continues to gain experience in the gaming industry, hopefully these kinds of comments will fall by the wayside.


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Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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