Despite the optimistic predictions of prominent gambling experts, it looks like the issues the Macau-based casino venues have, are here to stay. Although the revenue for September was relatively decent, the latest reports show that things have become even more complicated as far as the income for October are concerned.
According to the information released, October was the fifth month in a row, marked by a rapid decline in sales. The tourism sector was affected, the economy went in a wrong direction as well. All these factors, imposed a decrease in the revenue of the casinos.
The gambling sector in Macau hasn’t experienced such a serious drop in sales for a long time. The revenues decreased by 23% YOY or in other words they fell to $3.5 billion or 28 billion in local currency.
Macau is known as the Asian gambling Mecca. The revenues used to surpass those in Nevada but now, it seems like things have changed.
Contrary to the expectations of Sheldon Adelson, the situation didn’t improve. The latest report shows that it gets worse. Unlike Adelson, the casino mogul Steve Wynn has a more realistic standpoint. He commented that nobody can predict when the situation and respectively the revenues will be improved but nevertheless Macau remains an attractive gambling hub.
The worst of all is that casinos play a key role in keeping the local economy stable. Actually, they form almost 80% of the income of Macau.
Statistics confirm that the decline will continue at least until the middle of the next year when new venues are expected to open doors for players. An experienced market analyst predicted that 2014 will be the first year when an annual decline in the gambling sector in Macau will be observed.
One of the main reasons for the decrease in the revenue is the anti-corruption policy, issued by Beijing. It is believed to keep the well-off players away from the Macau-based venues, which has a devastating effect on the revenues. The data, included in the reports just comes to approve of that statement. A record downfall in the VIP revenue of more than 50% was also reported during the previous month.
The “mass market” suffered as well; the number of players who have participated in gambling activities has fallen.
Apart from the anti-corruption campaign, the other factors that had a severe effect on the revenue and the willingness of the players to wager, were said to be the smoking ban as well as the restricted access to Hong Kong, which is located near Macau.
Francis Tam, a Secretary for Economy and Finance of Macau, assured the communities that even if the tax revenues continue to fall, the finances of the Government won’t be affected.
Tam also added that the downfall was not surprising to the authorities and sadly, he believes that the tendency for reporting declines every month will continue bothering the casino owners for at least a few more months.
