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Bank Of America: Macau's Gross Gaming Revenue Improved, Highlights Other News Developments
Jayson Derrick, Benzinga Staff Writer
December 30, 2014 9:10 A

Read more: http://www.benzinga.com/analyst-ratings/analyst-color/14/12/5110645/bank-of-america-macaus-gross-gaming-revenue-improved-hig#ixzz3NQrIu65C

Billy Ng of Bank of America commented in a note on Tuesday that Macau's daily Gross Gaming Revenue (GGR) run-rate for the past two weeks improved to MOP752 million (~$94.12 million) from MOP698 million in the week before, implying a 7 percent increase.

Ng notes that the uptick followed China's President Xi's visit to the Macau region in which he highlighted that the central government is exerting greater control over the Macau gaming industry. The analyst adds that sentiment will likely remain weak in the near-term and only improve after investors have certainty where the new “normal” will be.

Ng states that the government's multi-billion dollar crackdown of illicit funds through Macau casinos is “nothing new” and this will not translate to a weaker gross gaming revenue forecast.
Notable News Updates

Ng points out that the Gaming Inspection and Coordination Bureau (DICJ) has issued a notice that a new measure imposing further restriction on setting up a VIP room account for gaming promoters will be implemented on January 1. The notice requires gaming promoters to present a certificate of criminal record that is free of offences prior to setting up an account for their gambling clients.

Ng highlights recent developments that Las Vegas Sands Corp LVS 0.53% and its Sands China subsidiary has “received the Macau government approvals needed to complete the construction” of its $2.7 billion casino resort, The Parisian.

Finally, Ng explains that Macau's Chief Executive Fernando Chui Sai On stated that he expects the weight of the casino industry in the city's economy to be gradually reduced and that pushing economic diversification away from gaming is a top priority for his second five-year term that began on December 20.