Macau gambling revenue surges to record high

HONG KONG—Macau’s gambling revenue jumped to a record monthly high in October, official figures showed Tuesday, as wealthy mainland Chinese continued to fuel growth in the world’s biggest gaming hub.

Gambling revenue hit 26.85 billion patacas ($3.36 billion) in October, up 42 percent year on year from 18.87 billion patacas a year ago, according to statistics on the official Gaming Inspection and Coordination Bureau website.

Accumulated gross revenue for the first 10 months of the year stood at 221.2 billion patacas, up 45 percent compared to the same period in 2010.

The October figures surpassed the all-time high monthly revenue of 24.77 billion patacas recorded in August this year, and show the continuing strength of the local gaming industry despite slowing economic growth in China.

The former Portuguese colony – which has six licensed casino operators – has seen a sharp increase in revenue since mid-2009, when the global financial crisis dented business at the city’s tables.

Shares in the casinos plunged last month as concerns over China’s economic prospects triggered fears of a credit squeeze in the country, which would affect the Chinese high-rollers who have fueled Macau’s rise.

China’s growth slowed to 9.1 percent in the third quarter, from 9.5 percent in the previous quarter, as government efforts to tame inflation and turbulence in Europe and the United States curbed activity.

Ratings agency Fitch, however, said Saturday that it saw “no evidence” that the tighter credit conditions and slowing Chinese economy would pressure Macau’s casinos.

Since the city’s gaming sector was opened up to foreign competition in 2002, Macau has leapfrogged Las Vegas in gaming revenue and continues to post record-breaking growth.

The boom in the gaming industry in Asia stands in sharp contrast to US venues such as Las Vegas, previously a byword for gambling but which is now suffering the effects of the global downturn.

Macau, which was handed back to China in 1999, is the only Chinese city where casino gambling is allowed.