The number of high-rolling gamblers in China are growing and wagering larger hands, according to a report released earlier this week. That news boosted casino stocks like Las Vegas Sands and Wynn Resorts, which have jumped over the past few trading days. Meanwhile, Las Vegas Sands also plans a new luxury hotel in Macau with Marriott International.
Spending trends for China's biggest gamblers, known as "whales," are accelerating this year, as high-stakes gamblers grow in number, Citigroup reported Monday for its Macau premium mass survey. Inside Asia Gaming first obtained the Citi report.
Citi said its team observed 228 whales wager a total of HK$43.3 million ($5.6 million) so far this year, up from 224 whales wagering HK$39.7 million ($5.1 million) for the entirety of 2023.
The high rollers are also averaging HK$655,000 in wagers per session, up 43% from last year. That trend has accelerated even higher to HK$728,000 over the past five months, according to Citi.
The firm defined whales as those who bet HK$100,000 or more.
"These stats continue to show that these affluent players are still able and willing to spend in Macau, despite the current state of the economy in China," Citi analyst George Choi wrote. Meanwhile, Citi noted there were 613 premium mass players for September, a 42% spike from last year.
"The 42% higher premium mass player count from our survey likely implies that more casual players are also returning. Although their return dilutes the average wager per player by (approximately) 5% year-on-year, it is a major driver to the 36% year-on-year increase in total wagers observed, which we view as a leading indicator on GGR (gross gaming revenue)," Choi added.
Choi said this indicates that the quality of premium mass players in general remains robust.
"Despite the weak economy in China, Macau is still getting players who are still very much willing and able to spend," he said.
Citi noted that Las Vegas Sands' subsidiary Sands China was the top performer for the month. Sands China amassed a 26% share of the total wagers for September, up from 22% in August. MGM Cotai and Melco Resorts' Studio City also saw heavy action during the month.
Elsewhere on Thursday, Beijing was considering a $142 billion capital injection to bolster banks, which would mark the country's largest stimulus since the pandemic.
LVS, Marriott Plan New Macau Resort
Meanwhile, Marriott International is collaborating with Sands China to open its Luxury Collection brand in Macau. Together, the companies are rebranding and relaunching the Sheraton Grand Macau as the Londoner Grand.
The Londoner Grand will be Marriott's first Luxury Collection hotel in Macau and is set to open in January 2025. The new site is located on the Cotai Strip, along with Sands' properties The Venetian Macau and The Parisian Macau.
Casino Stocks
LVS stock rallied 8% on Thursday, sending it back above its 200-day moving average.
Shares were pacing back toward 2024 lows at the beginning of September but have rebounded 25% from an August low.
LVS stock is now down just 1.7% on the year.
Wynn Resorts popped 8.2% Thursday. Shares retook their 50-day line last week and are retracing to their 200-day line.
MGM Resorts swung 3% higher Thursday to rebound just below its 50-day line. MGM stock tumbled 14.2% this year.
Marriott rose less than 2.2% Thursday. Shares are trading below a 255.32 buy point for a double-bottom base.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
