Vegas versus Macau Gaming Trends

A couple of things are evident looking at the gambling statistics from the world’s two biggest casino gambling towns, Macau and Las Vegas:

1. they’re on very different trajectories, but for the first time in 5 years, Vegas is the better looking trajectory
2. the Nevada State Gaming Control Board aren’t anywhere near as fast in releasing their figures as their counterparts in Macau

There was definitely no Santa rally in December for Macau. 2015 started badly, got worse, then finished with more disappointment. A whopping 34% down on on 2014 with no expectation of a reversal in fortunes in 2016.

Macau gross gaming revenues. Source: dicj.gov.mo

The table below compares casino game revenues of Las Vegas and Macau each year over the last decade.

Statewide Nevada revenues have been used, the vast majority of which is represented by Vegas. In the 2015 year for example, the figure for Nevada state was$11,083 million while Clarke County (comprising the Vegas Strip and Downtown Vegas) totaled $9,586 million.

Annual gross gaming revenues, Nevada v Macau

* 12 mths to November 2015
* converted at current USD/MOP exchnage rate. 1USD = 8MOP

After a horrible, GFC driven 2008 and 2009, things have stabilized in Vegas with moderate (if unspectacular) growth in the last 5 years.

Meanwhile in Macau, it appears somewhere around 2013/14 was the top of the VIP junket fueled roller coaster and they’re now on a steep decline with no bottom yet in sight.

Less than ten years ago Vegas was actually the bigger market. Is it conceivable that this could be the case again in a few years?

The one positive for Macau at the moment is the lightning speed with which their regulator reports the numbers – typically 2 or 3 days after the end of the month. Nevada’s State Gaming Control Board take more than a month.