Gross gaming revenue in Macau decreased 21.4% in January to MOP18.7 billion ($2.33 billion), the Macau Gaming Inspection and Coordination Bureau said in its traditional monthly report, released earlier today.
This has been the 20th consecutive month of decline at the Chinese administrative region’s gambling venues. May 2014 was the last month when those posted an increase in gambling revenue. The figure reported for January was completely in line with analysts’ expectations, who have projected a drop of between 18% and 26%.
The world’s most popular and profitable gambling destination has fallen victim to a more than two-year-long anti-graft campaign launched by Chinese President Xi Jinping and aimed at compromising corrupted high-standing political and other important figures who have been frequenting the administrative region. The overall economic slowdown in China also contributed to the declines in Macau’s gross gaming revenue over the past 20 months.
However, analysts said that the worst may be finally over. Major Las Vegas-headquartered gambling operators Wynn Resorts and Las Vegas Sands posted stronger-than-expected results for the fourth quarter of 2015, mainly due to the increase in mass market gambling customers visiting their properties in Macau.
Although Macau was once a major attraction for wealthy customers from Mainland China and the Asia-Pacific region as a whole, the city’s integrated resorts are now more oriented towards middle class, mass market ones. Following a recommendation by Macau’s government, the six gambling operators providing their services in the city have gradually started lessening their dependence on Chinese high rollers. That particular segment has been hit the hardest by President Jinping’s campaign against corruption and illicit flows of money out of his country.
Several new casino resorts are set to open later this year and those are expected to feature even more attractions for mass market customers, with a miniature Eiffel Tower and a large lake offering a gondola ride being only few of those.
Both gambling experts and executives said that the Lunar New Year holiday is expected to draw an even greater number of mass market gambling clients from Mainland China. Currently, those account for two-thirds of the overall number of Macau’s visitors. This year, the Lunar New Year festivities are set to begin on February 7.
