Earlier today, the Macau Gaming Inspection and Coordination Bureau released information about the revenue generated in April at the city’s 35 gambling venues.
According to the figures given by the regulator, revenue dropped almost 39% year-on-year to MOP19.17 billion. By comparison, the amount of MOP31.32 billion was posted this time last year.
In addition, revenue decreased 37% to MOP83.94 billion in the first four months of 2015 compared to the figures released for the same period a year ago. A 39% drop was posted in March and a record 49% one was reported for February.
April is the eleventh consecutive month that the Chinese administrative region marks a decrease in its gambling revenue. Casino officials and experts attribute the sharp decline to the anti-corruption campaign led by Chinese President Xi Jinping. Although the crackdown is primarily targeting the illegal outflow of funds from Mainland China, it resulted in a decrease of high rollers traveling to Asia’s and one of the world’s biggest gambling hubs.
Previously, prominent business magnates and government officials were among the wealthy players who frequented Macau’s casinos.
Apart from the corruption crackdown, analysts pointed several other reasons for the current condition of the city’s gambling industry. A few months ago, Macau’s government introduced tighter visa policies for people coming from Mainland China. In addition, stricter regulations were applied concerning the so-called UnionPay cards, which players tended to use in order to access their money in the gambling hub. The smoking restrictions at casino floors were also believed to have influenced the city’s casino revenue in a negative manner.
Recently, Macau’s government urged for diversification of the gambling industry and tourism, in general. Casino operators, in turn, promised that they would do their best to expand the scope of their operations and provide customers with various entertainment options apart from gaming.
Despite the slump in revenue, two new casino resorts are set to be launched this year. Galaxy Entertainment Group Ltd.’s Galaxy Macau Phase 2 is scheduled to open doors on May 27.
Furthermore, Studio City, an integrated resort which is to be located on the Cotai Strip, is to be opened some time in 2015, although no official date has been announced yet. The property was developed and is to be operated by Melco Crown Entertainment Ltd.
