Crown’s Macau Casino's Revenue Drops

James Packer's Macau Crown Casino (CWN) revenue slipped for a third consecutive quarter as travel restrictions on mainland residents slowed growth in visitor arrivals. Casino revenue declined to $3 billion in the fourth quarter from $3.2 billion in the previous three-month period, according to figures posted on the Macau Gaming Inspection and Coordination Bureau's Web site.

China has curbed mainland tourists' trips to Macau, the only place in the country with legal casinos, to limit growth in high-roller betting and maintain social stability. Gambling-revenue growth slowed to 31 percent last year from 47 percent in 2007. Macau's gambling revenue began surging in 2004, when the city's first foreign-owned resort opened after the end of a legal monopoly on casinos.

Last weak Las Vegas Sands also announced it was sharply cutting back its development, reducing capital expenditures by some $1.8 billion and putting off ambitious plans to build as many as eight more hotels on the Chinese island of Macau, near Hong Kong. The company said it will suspend work on a St. Regis condominium project it's building in Las Vegas. Instead, the company said it would focus on finishing a $5 billion resort it is building in Singapore that is due to open in late 2009 and a scaled-down version of a new casino it is building on the site of the old Bethlehem Steel plant in Pennsylvania.

The revenues of Macau casino fell by 7 per cent in three months to 24 billion patacas ($4.5 billion) which was 67 per cent in the year 2007. They have bets on table games and on poker machines in casinos. Melco Crown entertainments revenue dropped when it planned to open the City Dreams hotel and casino which cost about $2.2 billion. The company has also lost about 10% of its share since April 2008.