Macau is Lone Bright Spot for Casino Operators

The Macau casinos that are keeping world gambling profits afloat.

Over the last year or two, the biggest casino operators in the world have been suffering right along with the world economy. Visitor numbers are down, revenues are down and profits are way down. And things would be dire indeed for companies like Wynn Resorts, MGM and Sands, if not for one thing…their Macau casinos are rolling in dough.

Compared to the same time period last year, Macau gaming revenue jumped 70% in July of this year. That meant very good news for Wynn Resorts, and surprisingly okay news for the Las Vegas Sands Corp. They still lost money this quarter, but they lost a lot less than expected, due to good numbers in Macau. They only lost $4.7 million in the 2nd quarter of 2010, compared to the $222 million they lost in that same period last year.

MGM Resorts International is reeling, due mainly to their large investment in Vegas’ underwhelming City Center complex. They reported an $883 million net loss in Q2 of 2010. But, again, the numbers across the Pacific were much better. Their 50% stake in the MGM Grand Macau brought in $40 million bucks over this last quarter.

So the next time you’re on the strip in Sin City, look around at all those massive monuments to the almighty dollar, and reflect that each of them is costing its parent company money. And if it weren’t for a booming gambling market in China, you might be seeing a whole lot of “For Sale” signs on Vegas’ biggest casinos.