Inside Asian Gaming

INSIDE ASIAN GAMING | November 2011 12 CLSA Market Outlook O ur positive view on Macau gaming stemsfromthesector’shighmedium- term earnings growth and visibility, which is a function of robust demand but, more importantly, limited competition, low risk of new entrants and the government’s control on new supply. Scarce supply of competing markets and tables Over the next decade, Macau and Singapore will remain the only two major gaming destinations in the region, serving billions of Asian gamers. Japan could be the next meaningful market. Meanwhile, we believe it is unlikely for the Chinese government to legalise gaming anywhere within the country, including island Strong Demand + Tight Supply Leading regional independent brokerage and investment group CLSA Asia-Pacific Markets recently released its outlook for the Macau gaming sector up to 2020, titled ‘Raining Cash’. Last month, we published the key forecasts of authors Aaron Fischer, Richard Huang, Jon Oh and Clifford Kurz. In this second extract from the report, further light is shed on the market characteristics underpinning the bullish expectations Gaming tables in Macau will be limited to 5,500 effective till March 2013