Forecasts of analysts: Macau is developing little by little, Vegas is dying

What are the most interesting and unusual news of online gambling industry at the moment? Macau is developing rapidly now and Atlantic City is enduring a stagnancy. The Strip has too much accommodation but there are slight signs of recovery. CityCenter has issues. Janney Montgomery Scott, who is gaming analyst Brian McGill, said, that «the Las Vegas locals market is showing no signs of turning around». The another analyst David Bain joined to his point of view, because in his opinion «Recovery in the locals market would lag behind other regions until the Strip has a prolonged rebound». Some of the analysts suppose, that all this situation at the online gambling market is just a question of time and everything will take it’s place soon.

Without doubts, Macau is a bright and one of the best representatives in online casino business. It’s incomes increased on 70 percent in July in compare with the last year and on 20 percent in June.

The numbers helped Las Vegas Sands Corp., which owns three Macau resorts and is re-launches a construction on a Cotai Strip project that has been stopped for 21 months. Wynn Resorts Ltd. opened the second casino in spring, April, we could see an increment of revenues on 74 percent in the second quarter and moved ahead with a planned Cotai Strip resort.

Both companies get billions through initial public offerings on the Hong Kong Stock Exchange in autumn. The company has 50 percent of the MGM Grand Macau and is preparing its Hong Kong market IPO, which will take place in the fall and receive about $500 million. MGM and its Macau co-operative organization companion control a site on Cotai, but Murren are not going to discuss their plans for the future.

Murren announced that they are not going to have only one property in Macau, their aim is to own by several ones. MGM Grand Macau began to bring large gainings in the second quarter. The revenue of the company included $40 million, in comparing with last year, when there was an operating loss at the rate of about $8 million. But even in consideration of all increments it is not enough for promoting the organization. MGM Resorts is Las Vegas-centric.

Las Vegas Sands and Wynn each have two Strip resorts. MGM has 10, there is CityCenter's Aria among them, which could be cash-flow positive in the quarter if it wasn't for a low hold percentage in the casino.

As Las Vegas goes, so goes MGM Resorts. Lots of analysts are quite wary now in opinions about the Strip. It is going to add about 2000 hotel rooms, suites and luxes in December presumably.

As Deutsche Bank gaming Andrew Zarnett reported: "We continue to be concerned by the excess supply in the Las Vegas market".