UPDATE: Macau March Gambling Revenue Up 48% On Year At MOP20.09 Billion

Macau's gambling revenue surpassed MOP20 billion (US$2.50 billion) for the first time in March, government statistics issued Friday show, as mainland Chinese visitors to the territory helped push revenue up 48% from a year earlier.

Despite efforts by the local government to cool the booming industry, gambling revenue growth in the only place in China where casinos are legal has been irrepressible since the end of 2009. Macau overtook the Las Vegas Strip as the world's biggest gambling market in 2006 and last year raked in about four times the Strip's revenue.

Gambling revenue in Macau rose to MOP20.09 billion last month, up from MOP13.57 billion a year earlier, according to data from Macau's Gaming Inspection and Coordination Bureau. The total for March surpassed the previous monthly record of MOP19.86 billion, hit in February.

The pace of revenue growth in March matched February's 48% rise and exceeded January's 33% increase, though it was slower than the 58% surge for all of 2010.

Given the latest data, Union Gaming analyst Grant Govertsen said he expects Macau's gambling revenue to grow to more than five times the size of the Las Vegas Strip in 2011. He said the Chinese territory's gambling revenue is likely to rise by up to 30% to US$30.6 billion this year.

U.S. casino companies Las Vegas Sands Corp. (LVS) and Wynn Resorts Ltd. (WYNN) have been benefiting from this explosive growth through their Macau units, as has MGM Resorts International (MGM), through a joint venture with a daughter of Macau kingpin Stanley Ho, as revenue in Las Vegas remains sluggish.

They compete against Ho's SJM Holdings Ltd. (0880.HK), which leads the market by consistently generating around one third of the territory's gambling revenue; Melco Crown Entertainment Ltd. (MPEL), co-chaired by Ho's son Lawrence and Australian James Packer; and Galaxy Entertainment Group Ltd. (0027.HK), controlled by the family of Hong Kong tycoon Lui Che Woo and primed to expand its presence by opening a HK$14.9 billion (US$1.9 billion) casino-resort May 15.

March's gambling revenue total was in line with the March 22 forecast of Bank of America Merrill Lynch analyst Billy Ng, who said he expected the territory's gambling revenue to exceed MOP20 billion by rising 47% from a year earlier.

Ng forecast in the report that revenue growth will remain strong in April due to public holidays during the month and the fact that April has five weekends. March lacks public holidays and has one fewer weekend.

-By Kate O'Keeffe, Dow Jones Newswires; 852-2802-7002; [e-mail]