Macau’s Gaming Inspection and Coordination Bureau posted information about the monthly gross gaming revenue generated at the city’s gambling venues in October. Revenue fell 28.4% year-on-year to MOP20.1 billion. In comparison, the amount of MOP28 billion was posted for October 2014.
The city’s casinos generated a total of MOP196.1 million for the ten months ended October 31, down 35.5% year-on-year.
The city posted a drop in its October gaming revenue, despite the increased visits during the National Day holiday week between October 1-7. During the break, arrivals from Mainland China increased 7.1% from October 2014. However, the number of Mainland visitors rose 17% during the same period a year ago.
The 28.4% drop met analysts’ expectations who forecast a fall of around 28% for October. Revenue at the world’s most popular and profitable gambling hub has been falling for 17 consecutive months. May 2014 was the last month when an increase was registered.
The major decline in monthly revenue was mainly attributed to the stringent anti-corruption measures Chinese President Xi Jinping introduced. The anti-graft campaign resulted in high roller players keeping a low profile and avoiding the gambling mecca.
Another major reason for the drop in gaming revenue was the smoking ban that the city government introduced not long ago. Currently, mass market players are not allowed to smoke while on the main casino floor. The can do so only in specially enclosed smoking lounges. Smoking is still permitted in VIP rooms but this may not last long.
Officials proposed an amendment in the current regulations, calling for a full smoking ban in public spaces. If approved, it would prevent VIP players from smoking white at casinos. Many expressed concerns that such a ban may result in further drops in gaming revenue and more high rollers withdrawing from Macau.
Following the constantly decreasing revenue, the government of Macau said that the city should become less dependent on its gaming industry and urged casino operators to start offering more non-gambling attractions in order to attract a wider variety of both domestic and international tourists.
As a result major gambling operators such as Galaxy Entertainment and Melco Crown launched multi-billion-dollar complexes offering a number of exciting options. In fact, it was only a few days ago when Melco Crown officially opened the $3.2-billion Studio City, an integrated casino resort featuring a unique Batman-themed ride and the highest Ferris wheel in the region.
