Macau Casino Revenue Down 4.5% in July
Gross gaming revenue in Macau fell 4.5% in July measured on a year-on-year basis, according to figures released by the city’s gambling regulator – the Gaming Inspection and Coordination Bureau. The six licensed gambling operators offering their services in the Chinese administrative region generated a total of MOP17.8 billion last month. July has been the 26th consecutive month to see a drop in gross gaming revenue.
During the seven months ended July 31, Macau’s casinos generated the amount of MOP125.6 billion, down 10.5% as compared to what was reported for the same period of the previous year.
On a month-on-month basis, revenue increased 11.9% from June. Here it is important to note that June has been the month to post the worst gross gaming results since September 2010.
The latest figures reported beat analysts’ expectation by a little. Gambling experts have predicted a drop in revenue of about 4.8% for the month of July.
Although monthly results have been falling for more than two years now, Macau officials, gambling executives, and analysts have ultimately started talking about a much-anticipated improvement. The Chinese administrative region is expected to see first signs of revenue growth in 2017.
Macau is highly dependent on its gambling industry, with revenue from local casinos accounting for 80% of the tax proceeds contributed to the city’s coffers. Following Chinese President Xi Jinping’s crackdown on corruption, high roller players have been steering clear of the gambling hub for the past two years, with this hitting its casino industry in an unprecedented fashion.
Macau officials and casino operators have since been trying to divert their focus to non-gambling customers and recreational players. Several integrated resorts have opened doors, with those offering not just diverse and attractive casino options for high rollers but also entertainment for tourists and mass market casino customers.
The slight improvement in July was mainly attributed to mass market players and non-gaming customers the holidays season has brought to Macau. Two large hotel and casino complexes are set to open in the next two months and those are expected to further drive both casino and non-casino entertainment to new heights in a bid to improve the financial performance of what has turned into world’s biggest gambling mecca.
The $4.2-billion Wynn Palace, Wynn Resorts’ first casino complex on the Cotai Strip, is set for an August 22 opening. The other resort, The Parisian Macao by Sands China, is scheduled to open doors on September 13. High hopes are put on both properties to drive new types of customers to Macau, thus enhance its casino industry and overall economy.