Investors look for revival signs ahead of Macau Galaxy casino opening
Opening of Macau resort seen boosting sector suffering from Beijing's corruption crackdown
Galaxy Entertainment Group's launch of a luxury Las Vegas-style hotel casino in Macau later this month is expected to be a catalyst for a revival of gambling activity, which has slumped for 11 consecutive months.
Galaxy will launch its latest project - Galaxy Macau Phase 2 - on May 27, and analysts say it will be the first major boost to an ailing sector that has suffered from Beijing's crackdown on corruption.
"This would be the first launch in two years and we expect the new property to attract more players and help improve the overall sentiment," Jefferies analyst Leon Liao said.
Gross gaming revenue fell 38.8 per cent year on year to 19.2 billion patacas last month, the 11th consecutive monthly drop, according to figures from the city's Gaming Inspection and Coordination Bureau.
High-stakes gambling, the main income source for casino operators, has led the decline.
According to Barclays' research, revenue from VIP players - big punters who usually make their bets on credit - dropped 44 per cent last month, slightly recovering from a decline of 45 per cent in March.