Wells Fargo sees Macau Jan. GGR down 16-19 percent

Gross gambling revenue in Macau is likely to drop between 16 and 19 percent in January after the territory reported its first annual drop on record in 2014, according to Wells Fargo.

The bank bases its estimates on checks through to Jan. 4th.

Average Daily Revenue will range in January from MOP725 million ($90.7 million) to MOP 750 million, after an average of MOP950 million in the first four days of the month. The later value, however, is considered extraordinarily high due to New Year’s Day and weekend days.

GGR dropped 30.4 percent in December, leading to an annual decline of 2.6 percent after China’s anti-corruption drive, a slowing mainland economy, visa restrictions and a clampdown on credit all combined to cut spending.

“We remain on the sidelines regarding the Macau market, as we believe China’s policy settings are negatively affecting growth,” a note said.

Most analysts are predicting a continuation of the gloom affecting the casino industry in Macau in the first half, though the consensus is for a pick up in the second half of the year as the opening of two new properties spurs visitation and improves capacity.

 

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