In view of the outflux of currency from China, the country’s symbol seems not so much a Great Wall as a giant sieve. This was symbolized recently by the attempt to control UnionPay cash transfers masquerading as purchases in Macao. The government’s efforts are not entirely ineffectual. MGM China CEO Grant Bowie describes players as “more circumspect” in response to the new policies.
“Other methods of moving money are also disappearing,” reports the Wall Street Journal. “Jewelry counters on casino floors, where gamblers could do a quick buy-and-return transaction and come away with cash, have recently been shut.” This could manifest itself in diminished mass-market play. “The government isn’t turning the tap off,” one source told the WSJ. “But they don’t want it to get out of control.”
Nonetheless, governmental controls are expected to have a depressive effect on August play in Macao. Estimates range from a 2% increase to a 4% decline. When “anti-corruption” is the phrase of the day, it doesn’t behoove one to be seen betting large at Grand Lisboa. So far in the month, gambling revenues are down 1% from last year. Analyst firms like Sterne Agee had expected to see a more solid Macanese recovery by this time, with the World Cup over and bettors expected to have flocked back to the tables.
Citing “limited positive catalysts,” Wells Fargo is revising its third- and fourth-quarter projections downward. Barclays still forecast 5% to 11% growth in 2H14 but Citigroup is less sunny, projecting only a 4% increase.
* The Cosmopolitan of Las Vegas enjoyed a dramatic revenue increase of 17%, shaving second-quarter losses to $13.6 million. More 
to the point, the Cosmo seems to finally be getting its act together on the gaming floor, where revenues grew 68%. Gaming revenue ($51.4 million), however, still continues to be healthily outpaced by food-and-beverage monies ($95.3 million) and rooms ($80.1 million). Only entertainment and retail ($10.3 million) lagged, undoubtedly pulled down by the poor performance of Vegas Nocturne, a fate for which the Cosmo is being sued. Producer Spiegelworld accuses the resort of “sabotaging” the show (although its baroque formula and schedule could be blamed), accusations Cosmo execs brushed off even as they took a $1.5 million writedown on the mini-spectacle.
