Gaming insights Gaming

MGM Cotai to benefit Macau recovery

Written by Ben Blaschke

Macau’s recovery is well underway and will only benefit further from the opening of MGM Cotai in 2017, according to international ratings agency Fitch.

In the wake of a fourth consecutive month of rising gross gaming revenue for the city in November, which saw a 14.4% year-on-year increase, Fitch Senior Director Alex Bumazhny said that a greater focus on mass market and the opening of new properties this year had proved a positive for Asia’s gaming hub.

“Macau gaming, now firmly at the bottom of the cycle, has better long-term prospects given investments in new supply, improvements in mass market indicators and under-penetration of gaming throughout the rest of Asia,” he said. “That assumes the revenue improvements seen recently stick and then increase slightly when the MGM Cotai opens.

“The mass-market segment appears to be responding well to new supply so far, with year-on-year gaming revenue for this segment increasing 4 percent in third-quarter 2016.

“Macau operators’ commentary on their long beleaguered VIP segments started to turn positive this fall.”