Macau, the world’s largest gaming center, will return to its peak within the next five years, said Melco Resorts & Entertainment Ltd.’s billionaire Chairman Lawrence Ho.
Ho, who is also vying for a casino license in Japan, is “extremely bullish” on Macau, he said in an interview on Bloomberg Television with Haslinda Amin.
“Definitely within the next five years, it will grow back to the $45 billion gaming market,” said Ho, who also serves as chief executive officer. “And that’s just the gaming alone, because the non-gaming part is significant.”
Ho’s projection is one of the most upbeat for Macau’s gaming industry, which reached its highest annual peak in 2013. The industry then struggled as high-stakes players stayed away from China’s sole gaming hub amid Beijing’s corruption crackdown. The industry’s recovery is now gaining traction, with gaming receipts in April rising for a ninth consecutive month.
Macau’s April casino receipts rose 16.3 percent to 20.2 billion patacas ($2.52 billion), beating the median analysts’ estimate of a 15 percent rise. April’s gain was the third consecutive month of double-digit growth for the industry. Casinos including Melco and Las Vegas Sands Corp. have shifted focus to attract casual gamblers and families, while high rollers have also returned to the tables in recent months.
Ho was also optimistic about the prospects of entering the Japanese market. Ho forecast it could “easily” be a $20 billion market if cities such as Osaka or Yokohama had one or two casino resorts.
To watch Bloomberg TV’s interview with Lawrence Ho, click here.
“If it’s $20 billion divided by two or three or four operators, that would be very significant,” he said.
Given Japan’s potential, Ho said Melco “will do whatever it takes” to get a Japan casino license. Earlier this year, Ho pledged to spend “whatever it takes” to win a casino license in the country.
“We don’t want to put a dollar figure on it because ultimately, the opportunity is priceless,” he said.
[“Source-bloomberg”]
