Macau’s gross gaming revenue plummeted 87.8% in February due to the coronavirus outbreak and the measures taken by Mainland China to contain the spread, the city’s Gaming Inspection and Coordination Bureau (DICJ) announced earlier today.
Macau’s 41 casinos generated MOP3.1 billion (approx. $386.7 million) last month. The February figure was worse than analyst expectations of an 80% drop.
The city’s gambling venues generated MOP25.37 billion in February 2019. The annual drop recorded last month was the steepest since casino gaming was introduced in the Special Administrative Region, which is the only place in China where casinos are legal.
Casino Revenue Hit by Two-Week Closure
Following the COVID-19 outbreak and its spread across and beyond China, Macau’s 41 casinos were ordered to shut down between February 5-20 as the country was grappling to contain the virus.
Most of the city’s casinos reopened doors on February 20, but gaming operations are still subject to heavy restrictions until further notice.
Casino staff and patrons are required to wear facemasks. In addition, gamblers must have their body temperature checked regularly and must present a health e-declaration in order to be allowed to gamble at Macau’s casinos.
Even though the gambling venues were allowed to resume operations and coronavirus cases are reported to be slowing in China, casino executives and Macau residents say that gaming revenue will remain badly impacted in the city.
Businesses dependent on the 41 casinos will, too, continue to suffer from the virus outbreak as well as the health restrictions and Macau entry regulations implemented.
As of Friday, February 28, there were only two casinos in the city that remained shuttered. It is understood that both Casino Taipa at the Regency Art Hotel and the Casino Macau Jockey Club at the Macau Roosevelt Hotel are yet to ask for permission from Macau’s gambling regulator to reopen doors. Both venues operate under a license held by casino operator SJM Holdings.
Decreasing Revenue
According to DICJ stats, gaming revenue for the first two months of the year dropped nearly 50% year-on-year to MOP25.23 billion. Weakening figures can mainly be attributed to the coronavirus epidemic, but it should be noted that the performance of Macau’s casinos in 2019 was somewhat disappointing as well.
After a stable growth recorded at the end of 2018, gaming revenue for the twelve months to December 31, 2019 dropped 3.4% year-on-year to MOP292.5 billion. The city’s 41 casinos generated revenue increases only in four months throughout the year.
Sino-US tensions, Hong Kong protests, and growing regional competition were among the factors that impacted the performance of the casinos located in the world’s largest gambling hub and the only place in China where casino gambling is legal.
Source: Macau gaming receipts fall 87.8% in February
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