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Sands China LTD had a January 6, 2014 stock price of . The Venetian Macau showed the best mass market to VIP balance of any Macanese concessionaires in Q3-2012 with mass market (table games only) revenue of 7. The Chinese economy is vast and complicated, and as far as we can know the part of the corruption crackdown that stymied the junkets could be a shakedown that will mysteriously evaporate as soon as the Big 6 in Macau show some interest in neighboring Hengqin....
Whereas in 2013 Melco Crown Entertainment Ltd.ough, by many indicators, the Chinese economy surpassed the US for world dominance by the Fall of 2014 [in terms of GDP based on purchasing power parity (PPP)] it is still anything but stellar in regards to health and vitality – showing weakness in many sectors. Complete financials for 2014 are not available yet, so we will need to speculate a bit based on overall numbers, and we’ll leave it to readers to form their own opinions....
Although efforts have been made to attract middle class gamblers across almost all properties from 2012 to 2014 (gambler visits were up from the mainland and down from Hong Kong in 2014) the wide gap in mass market revenue to VIP revenue has not shifted enough to account for the losses seen on the 2014 year. Wynn Macau was the extreme exception and saw a Q3-2014 mass gaming revenue increase year to year of nearly 40% while VIP revenue on drop was 17. The complicated Chinese economy is set to miss the government’s 7....
But that’s another story altogether.Here are the dismal numbers – The stocks of the six casino concessionaires in Macau saw an average drop of 40% in 2014.8....
8 million from table drop and 4 million from VIP rolling chips. And although all indications are that the rich are getting richer (precise numbers are impossible to come by because China’s elite do not disclose details to government statisticians) the top 1% are not the only contributors to the VIP tables. A shrinking, or less robust economy will certainly drive the numbers at the casinos....
