Statistics related to the revenue generated in Macau-based casinos in March has been released. According to the numbers reported, the gambling revenue dropped by 39% as compared to the results announced in March 2014.
In other words, March was the tenth month in a row when a considerable decrease in revenue has been registered. The March results missed experts’ expectations pointing to a 40% revenue drop.
As for the quarterly revenue, it was estimated at 64.8 billion patacas or the decline was 37% YOY. Detailed information about it is expected to be released at a later stage.
The serious drop was attributed mainly to the fact that Macau casinos are no longer attractive to high-roller players who opted for other gambling destinations, primarily in the neighboring countries.
The intensive anti-corruption campaign of the Chinese President Xi Jinping was the main factor but the smoking ban as well as the visa restrictions also played a key role in the record decline.
According to the released data, the revenue generated during the previous month amounted to 21.5 billion patacas. In comparison, it was 35.5 billion patacas exactly one year ago.
Although the current situation is complicated, market analysts say that the long-term perspective is more optimistic. As soon as the non-gambling facilities, recommended by the authorities, start attracting enough visitors, the revenues would definitely mark an increase.
February has been the worst month since 2011 as a decline of 49% was reported. Even the celebrations for the Chinese New Year and the increased number of visitors could not compensate for the losses.
For the time being, Macau relies predominantly on the gambling industry in order to have stable economy. That is why back in December 2014, Xi Jinping proposed urgent diversification.
The licenses of the existing casino operators are to expire in 2020 but before that, they have to go through government’s assessment. Wynn Macau Ltd, MGM China Holdings Ltd, Galaxy Entertainment Group Ltd, SJM Holdings Ltd, Sands China Ltd and Melco Crown Entertainment Ltd will be carefully monitored so government officials can make sure that they are attempting to popularize the non-gambling facilities. Their contribution to Macau’s economy diversification and the impact they have on communities are also to be taken into consideration.
Currently, less than 10% of the total revenue is generated by non-gambling amenities and the percentage should be increased in near future.
