The Macau Gaming Inspection and Coordination Bureau released information about the performance of the six casino operators that provide their services on the territory of the administrative region in May. According to the data released, gross gaming revenue dropped for the twelfth consecutive month.
Macau’s gambling venues generated a total of MOP20.35 billion ($2.55 billion), down 37.1% year-on-year. In comparison, the amount of MOP32.4 billion was posted for the same period last year. In fact, May 2014 was the last month the city’s Gaming Inspection and Coordination Bureau reported a rise in gross gaming revenue. It increased 9.3% year-on-year.
Gross gaming revenue for the five months ended May 31 also decreased 37.1% to MOP104.29 billion as compared to MOP165.87 billion posted for the same period a year ago.
Experts attributed the decline in Macau’s revenue from gambling activities to the anti-graft campaign launched by Chinese President Xi Jinping. It targeted Communist Party, government, military, and company officials who had been suspected of being involved in corruption. President Jinping’s measures against the illegal outflow of money from Mainland China resulted in a drop in the number of Chinese high rollers traveling to the gambling Mecca.
According to some analysts, the full smoking ban that Macau’s government intends to impose on casinos will also contribute to the further decrease in both mass market and VIP gross gaming revenue. Currently, smoking on the main casino floors is only allowed within enclosed lounges that do not feature gaming tables and slot machines. On the other hand, VIP players are still permitted to smoke at VIP rooms.
Despite the slump in revenue, Galaxy Entertainment Group, one of the gambling operators that provide their services in Macau, launched the $3-billion second phase of its casino resort Galaxy Macau on May 27.
Apart from the casino floor with 150 gaming tables, Galaxy Macau Phase 2 includes two hotels – a Ritz-Carlton one and a JW Marriott one, numerous retail and food and beverage options, an expanded Grand Resort Deck with swimming pools, etc.
Galaxy Entertainment also opened the renovated hotel and casino property Broadway at Galaxy Macau. It includes a 3,000-seat theater and other facilities intended for mass market visitors.
Recently, the government of Macau has pointed out that the city should become less reliant on its gambling industry and diversify its economy. This is why casino operators have been urged to start offering more non-gambling options to visitors of the administrative region.
