Telsey Advisory Group analyst Chris Jones said Monday that the mass market segment in Macau — tourists and casual middle-class visitors — may be losing steam. And Las Vegas is picking up the slack.
“We believe we're beginning to see people relocate their gaming dollars” from Macau to Las Vegas, Jones told IBD. “That’s largely been caused by the federal government crackdown.”
MGM Resorts International, Sands, Wynn Resorts and others with casinos in Macau has been impacted by weakness there.
But MGM also has the most important geographic footprint in Vegas, operating casinos on 742 acres, in line with a up to date Union Gaming report. So it usually is a winner in a Vegas boom. In contrast, Wynn’s resorts cover 240 acres and Sands’ just 82 acres, the report said.
Analysts has been warning for months of a summer slowdown in Macau VIP gaming after officials arrested several local lenders on charges of illegal money laundering.
Gamblers, especially VIPs, often take legal loans to skirt Macau limits at the sum of money that may be dropped at the district.
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