Macau Chief Executive Fernando Chui Sai On said that gross gaming revenue at the city is likely to further drop in 2016, after delivering his annual Policy Address on Tuesday. According to Macau’s top official, the administrative region’s casino revenue for the next year would come in at an approximate of MOP200 billion ($25 billion) or MOP16.6 billion per month.
Mr. Chui commented that Macau’s gambling industry has grown at an extremely rapid pace in the past decade and quite expectedly, it is now undergoing “a profound adjustment phase.” The official also added that they are well-aware that their forecast for the next year is a bit conservative but it aims at maintaining economic stability.
Revenue at the world’s biggest gambling hub has been falling for seventeen consecutive months now. During the first ten months of 2015, the city’s casinos raked in a total of MOP196.1 billion, down 35.5% from the figures posted for the same period a year ago. Last year, Macau reported its first annual drop in gross gaming revenue since 2002, when the former gambling monopoly system was removed and three outside gambling operators were allowed to operate in the city.
Mr. Chui said on Tuesday that the government will continue encouraging casino companies to increase the number of their non-gaming options in 2016. According to Macau’s Chief Executive, sectors like retail and hospitality have recently expanded and are expected to further grow in the years to come.
The government of Macau will also continue strengthening the city’s gambling regulations in 2016, especially the ones concerning the junket operators providing their services there and the way those manage credits granted to VIP players. Last month, new accounting rules were issued for junket operators as well as certain guidelines, under which the companies are required to disclose information about their accounting personnel.
Those changes came after back in September, an employee at a local junket operator was accused of stealing millions of dollars from customers.
Mr. Chui also revealed that the government is set to discuss measures for crowd control and to study Macau’s capacity to welcome visitors during holidays. In addition to this, a new ferry terminal is expected to be opened sometime in the second half of 2016.
