Investors Says Macau Casino Stocks Gradually Soaring
Macau casino stocks are finally gaining momentum and investors see an upward recovery for Asia’s gambling capital.
The James Packer-owned Crown Casino Resorts have been in a hot water last month. It saw Australian casino stocks plummet after the Crown Casino employees’ arrests. Macau received positive repercussions from the recent incident starting with Janchor Partners founder John Ho supporting Macau’s “phoenix rising from the ashes” economic recovery.
John Ho Says Macau is an Economic Phoenix
Investment firm Janchor Partners, John Ho, recently talked with investors at the Sohn Hearts and Minds conference in Sydney. Mr.Ho told the audience that Macau has weathered an economic storm brought by China’s anti-corruption campaign. He is now supporting the economic resurgence of Macau as it gradually recovers.
Mr.Ho emphasized that the market capitalization for Macau’s gaming companies was around $2 billion which plunged by 70% in 2 years. Gaming demand in Macau has soared from 2010-2013 but regulation concerns were not in place. The Chinese government stepped in to regulate the market but the upward growth has been affected during 2014-2015.
Australia’s Loss is Macau’s Gain
Casino mogul James Packer gambled in Macau via his joint venture with Lawrence Ho’s Melco Crown. Mr.Packer eventually sold down his interest in the company to concentrate on managing his Australian assets. Mr.Packer’s Crown Resorts have trimmed its stake in Melco Crown from 34% to 27.4% in a $US800 million deal during Q2.
The recent Chinese crackdown on Crown Casino saw 18 Crown employees detained. The arrests were in connection of Crown’s Australian VIP marketing to high roller clients. Australian casinos have enjoyed VIP-boosted revenues until the Chinese crackdown. Macau is now the recipient of its favorable repercussion as Macau’s economic resurgence is bolstered by VIP revenues intended for Australian casinos.