Macau gaming stocks are in for a "watershed" year, with casino operators in the Chinese enclave set to enjoy solid demand growth without a significant increase in new supply, according to Citi.
"2014 is the first year since 2005 with no major casino opening to drain growth and will be a year with excess demand given the largest hotel property on the mainland is opening up across the border in Hengqin," analysts at Citi wrote in a report this week.
"The lack of a significant opening until mid-2015 provides an 18-month runway," they added.
This is in stark contrast with what happened over the last three years, the analysts noted, when Galaxy Macau and Sands Cotai Central – the two newest properties in Macau – took a significant portion of the overall gaming revenue growth in the city.
The bank forecasts gross gaming revenue – the amount wagered minus the winnings returned to players – will total $54 billion in 2014 – a near 20 percent rise from the previous year.