A Slowdown in Macau Casino prompted UBS to lower its estimate for its big casino operators.
Casino Stocks have suffered a good deal in 2018, hurt about the worries about a Slowdown in spending at the chinese gambling hot spots. It looks like those fears are justified, written by USBs Robin Farley.
On Wednesday, Farley lowered her forecast for Macau Gross gambling revenue or GGR saying she expects sales to decline 1% in 2019, preciously she projected a 5% rise.
“Despite November Revenue better than expected. Our lower estimates are driven by weaker VIP and Premium demand and heightened risk to the macroeconomic outlook in China,” she Wrote.
It’s not that people are not coming to Macau, its that they are spending less, perhaps partly because more tourists, rather than gamblers, are making the trip. Lower income players are adding to their gambling budgets, but higher income visitors are pulling back.
She believes that MGM Resorts international has been slow to ramp up activity at a new casino on Macau’s Cotai Trip but says that company has underperformed this year, it could star in 2019, winning market share.