The main place in China where citizens can legally bet in casinos is in Macau – a “special administrative region” since 1999.  Macau is known as the “Las Vegas of Asia” and is a significant source of revenue for U.S. casino holding companies which represent three of six corporations with licenses to operate in the region.

For the Americans, the fun in this former Portuguese enclave began in 2004 with the opening of the first big foreign casino by Sheldon Adelson’s Las Vegas Sands (LVS) Corporation; other U.S. (and non-U.S.) competitors followed hot on its heels as operators realized they had hit a jackpot.  By early 2014, Macau’s gambling revenues for U.S. casino operators had grown to $12B.  As this Chinese enclave suffered a market crash in 2014-2015 – brought about by official corruption and compounded by an economic downturn in Macau and China – this was accompanied by a reversal of fortunes for both Macau’s gaming revenues and U.S. casino operators.  As recovery set in the slot machines once again started singing in 2016.

Notes:
Macau’s revenues derive from casinos in China and other countries including the U.S.
U.S. casino tickers in our list are WYNN, LVS, MGM., CZR, BYD, PENN, CHDN, CNTY, ERI, FLL, GDEN.

Today, more than a quarter of total U.S. casino revenues are generated in Macau. Three operators comprise almost 60% of total U.S. casino industry revenues in Macau: Wynn Resorts, Limited (WYNN), LVS, and MGM – each generating 75%, 62.2%, and 20.8% of their revenues in this independent city-state.

Our algorithms predict U.S. casino operator revenues will become less reliant on Macau over the next couple of years, with sales fluctuating around current levels as Macau’s gaming revenues simultaneously experience a slowdown.  The majority of Macau’s visitors originate from mainland China and Hong Kong.  Ongoing tensions in Hong Kong and economic problems in China are expected to impact Macau’s gaming and tourism sectors at least until 2021.  What happens next is anyone’s guess as all six casino concessions in Macau are set to expire in June 2022.

 

Big Data Federation, Inc. is an artificial intelligence-driven financial technology company which develops and applies innovative machine-learning technologies to big data to predict financial and economic fundamentals metrics.  We use these predictions to fuel our automated hedge fund.  We comprise a group of technologists, mathematicians, data scientists, economists, and programmers. The company was incorporated in 2015, is headquartered in Santa Clara, California and has a satellite engineering office in Europe.