Nov
22
Casino Revenue Trends Q1 2014
Added on November 22, 2024, in Casino Industry News by Gambling Gurus
Casino Revenue Trends
Macau keeps up its dynamic start to 2014, registering casino gross revenues of MOP21.3 billion (US $3.92 billion) in April. This is the third consecutive month surpassing earnings of over MOP30 billion! Growth in earnings in April equate to a massive increase of 10.6% over the corresponding month in 2013.
Taking into account what has already been earned and what the expectations are for the rest of the year it could be within Macau’s reach for their casinos to post gross casino revenues of over MOP400 billion (US $50.1 billion) for the first time since the former Portuguese colony opened its market to the gambling establishments.
Of course falling short of any goal is always possible, and as analysts remain temperate on their expectations because of the continued economic uncertainty in China and the slower credit growth, they believe that these facts may have an impact on the VIP segment. High Rollers still account for the largest slice of business in the casino haven and account for about two thirds of overall revenues, and if these players decide not to play then it obviously will have a negative impact. Only time will tell, and it will be interesting to see if the record is broken or not.
Frosty Ground for BOYD Gaming
The US online casino operator Boyd Gaming has stated that they have suffered an 11.6% drop in their Q1 earnings. Casino Revenue Trends indicates that the weather conditions at its operations outside Nevada plus a seven figure operating loss from its online gambling operation in New Jersey has added to dragging the operator down.
Falling by nearly 4% and earnings also slipped. Dreadful weather conditions pushed earnings down between $10m and $12m with a net loss of $6.2m in Q1 (which is actually an improvement over the $7.3m loss in the same period last year.
Other Boyd concerns saw revenue rise or stay flat although Boyd CEO Keith Smith celebrated the Borgata having led all New Jersey online competitors ever since the market opened and also noted that the Borgata brand (co owned by Boyd and MBM Resorts) represents nearly one third of the market and nearly 40% when combined with Boyd’s online partner Bwin Party.
Smith predicts that his company is well positioned for similar successes as other states move forward. It really is another story of time will tell, as election year in the US will have a static effect on the industry as hard line conservatives stem the progress of the gambling industry for at least another year.
