China’s Money Exchange Crackdown Affects Macau Gaming Sector
Friday 12 de July 2024 / 12:00
2 minutos de lectura
(Macau).- Macau’s gaming sector EBITDA growth is likely to see a slowdown in June and July due to mainland China’s money exchange crackdown, brokerage firm Morgan Stanley said.
In a recent update, analysts Praveen K. Choudhary, Gareth Leung, and Stephen W. Grambling highlighted that the second quarter is projected to report the first negative quarter-on-quarter growth in both industry mass gross gaming revenue(GGR) and corporate EBITDA since the post-COVID-19 reopening.
The forecast suggests a 2 per cent quarter-on-quarter decline in mass GGR, reaching 113 per cent of the 2019 level, while corporate EBITDA is expected to decrease by 7 per cent quarter-on-quarter, reaching 80 per cent of the pre-pandemic level.
Comparing the full-year 2024 EBITDA consensus with the run rate of the first half of this year, the analysts pointed out that a 5 per cent half-year over half-year growth is necessary in the second half of this year to achieve the full-year 2024 consensus.
However, the brokerage firm predicts that June and July will see a slowdown due to the money exchange crackdown, while weaker macroeconomic conditions, consumption, and retail sales in China could persist in the third quarter and impact the Macau market.
Earlier in June, China’s Ministry of Public Security urged security forces in Macau and the mainland to strengthen cooperation in cracking down on illegal money exchange businesses in the Macau SAR.
The so-called ‘money changers’, present around the city’s casinos, have been identified as a key method for moving funds across different jurisdictions, particularly between the mainland and Macau.
In the report, the analysts also anticipate that the fourth-quarter results will be negatively impacted by the visit of China’s President Xi Jinping.
President Xi is expected to visit Macau to mark the 25th anniversary of its handover to China by the end of this year.
Categoría:Gaming
Tags: Sin tags
País: Macao
Región: Asia
Event
GAT EXPO CARTAGENA 2025
28 de April 2025
Stefan Lackner Analyzes GAT Expo Cartagena 2024: Market Insights & Future Plans
(Cartagena, SoloAzar Exclusive).- In an exclusive conversation with SoloAzar, Stefan Lackner, Product & Compliance Manager at Amatic Industries, shared his experiences at GAT Expo Cartagena 2024. Lackner highlighted the strong presence of land-based gaming solutions, noting how exhibited products align with local demands.
Wednesday 07 May 2025 / 12:00
GAT Cartagena 2025: Win Systems celebrates the success of its participation
(Barcelona).- Win Systems, a leading provider of technology for the gaming and entertainment industry, is celebrating the overwhelming success of its participation at GAT Cartagena 2025, one of the most prominent events in the Latin American gaming sector
Tuesday 06 May 2025 / 12:00
26th edition of GAT Expo Cartagena closed with great success
(Cartagena de Indias).- The most important fair for the gaming, entertainment, technology and Esports industry in Latin America ended with an excellent commercial balance and testimonials of satisfaction from suppliers and operators, local and international authorities, associations and the main trade unions in the region.
Friday 02 May 2025 / 12:00
SUSCRIBIRSE
Para suscribirse a nuestro newsletter, complete sus datos
Reciba todo el contenido más reciente en su correo electrónico varias veces al mes.