Losing streak among Macanese gambling moguls cause muddled speculations for 2015.
Analysts are wondering what will become of the Macau Gambling industry in 2015 given the losing streak they’d had in 2014. Some feel there may be a 9% fall this year. Optimists foresee a 10 percent rise in revenues.
In 2014, gambling revenues declined by 2.6% to US$54.4 billion, the lowest since Macanese gambling laws allowed casino gambling in Macau 13 years ago. Also, there has been an overall 40 % fall in market capitalization, caused by decreasing casino company share prices.
The 7 month decrease in overall revenues came to an all-time low in December when earnings fell to $3 billion that month. Although this doesn’t mean that the gaming industry is broke gambling moguls were big losers in Macau.
2014- a cold year for Packer, Ho and Alderson
James Packer and Lawrence Ho, who jointly own Melcro Crown, lost over $7 billion in market capitalization. Share values dropped by 35%.in comparison to earnings a year ago, where share prices were twice as it is today and revenues had increased by 19%.
Sheldon Alderson, who staunchly opposed online gambling sites in Macau, lost $26 billion in market capitalization. Sands China shares prices fell by a hefty 40% in 2014, making Alderson the biggest loser in the gaming business, in Macau, last year.
While China, by clamping down on corruption and causing players wagering big bets to skip town, the overall outlook for January 2015 may be worse than it was in 2008 and 2009 when a global recession caused monthly revenues to drop. Indeed, prospects for 2015 are looking as uncertain as the throw of a dice.