Casino Profits on the Rise in 2017
Global casino income reports from some of the world's top casino providers are showing that casino revenues continue to climb. MGM Resorts International has most recently reported in their first quarter of 2017 a tripling in revenues, thanks to National Harbor casino and Atlantic City's Borgata.
MGM stated that total revenues for the first quarter rose 22 percent to $2.7 billion, compared to last year's first quarter. At the same time, operating income soared 57 percent to $497 million, while net income nearly tripled after reaching $253 million compared to last year. These propitious results primarily stem from the contribution made by the National Harbor casino and the recently acquired 50 percent share of the Borgata, in Atlantic City.
In Asia, thanks to the increase of major floor table games having a higher win ratio, MGM China's profits climbed to $502 million in revenue, which is a seven percent increase. Operating income rose 55 percent to $73 million.
Jim Murren, MGM CEO, stated in an analyst report that Maryland's National Harbor has taken 30 percent of the market in a relevantly short period of time. He went on to say that this success was due to its tables' win per unit per day, which was over $5,800. Murren also stated that the poker tables were running in the lead of expectations.
Some other big casino names, such as the Betsson AB headquartered in Stockholm, Sweden, reported steady and solid growth in revenue for the first quarter of 2017, to SEK 1.1 billion. Betsson AB's gross profit also grew at a similar rate of 8 percent to SEK 806 million, comparing it to its 2015 gross of SEK 746 million. Ulrik Bengtsson, Betsson AB's CEO, said that casino gaming rose 23 percent year-over-year to SEK 823 million. A high percentage of “player friendly” sporting results influenced sportsbook revenues, causing them to fall to SEK 250 million from its 2015 SEK 292 million revenue.
Casino gaming in Macau is seeing many of its VIP costumers returning as new casinos are being built. Macau, China, was made into the world's largest gambling mecca by its high-rolling VIP players. And while casino names like MGM Resorts and Las Vegas Sands are reporting shares up more than 1 percent each, John DeCree, a Union Gaming Analyst in Los Vegas, said that 75 to 80 percent of investors' profits are coming from China's Macau.
All three U.S. casino giants operating in Macau reported that their first quarter of 2017 was boosted by help from Las Vegas and Macau operations. April has shown to be the 9th consecutive month of overall growth, and a third consecutive month of double digit percentage growth.
It was not not long ago that Macau was facing a two-year slump in the casino gaming industry as high-stakes players were staying away from China. China had been suffering from crackdowns on corruption within the industry. The recovery has actually helped boost business with more casual gamblers and families as Las Vegas Sands Corp. and Wynn Resorts Ltd. begin opening new resort style casinos in the area.