Revenue at Macau’s casinos dropped 32.3% year-on-year in November to MOP16.4 billion ($2.1 billion), the city’s Gaming Inspection and Coordination Bureau said early on Tuesday. In comparison, the amount of MOP24.3 billion was reported for the same month a year ago.
November has been the eighteenth consecutive month when a decrease in Macau’s gross gaming revenue was posted. In addition, the reported figures have been the lowest since the beginning of the year. Analysts expected a decline of up to 31.5% for the month.
Macau’s gaming regulator last posted a growth in gross gaming revenue at the former Portuguese colony in May 2014. Despite the decline in its casino industry, the city’s casinos still generate more than those in Las Vegas. Thus, it could be said that Macau is still the world’s most profitable gambling destination.
Gambling experts attribute the sharp declines in revenue to the weakening economy and the anti-corruption campaign in Mainland China, led by President Xi Jinping. Due to the stringent measures that had formerly been introduced, wealthy gambling customers started avoiding the gambling hub and traveling to other destinations in the Asia-Pacific region.
According to the latest information, more than 80% of Macau’s revenue is generated at its casinos. Given the current state of the local gambling industry, lawmakers have been looking for ways to reduce the city’s dependence on its gaming facilities. For instance, they have been encouraging gambling operators to increase the number of other options at their properties in a bid to attract the attention of international tourists.
In October, Melco Crown Entertainment, a joint venture between gambling giants Melco International Development and Crown Resorts, launched Studio City, a $3.2-billion Hollywood-themed integrated resort. The expensive complex, which offers not only gambling options but also numerous family-oriented entertainment ones, could be considered Macau’s first attempt to become less reliant on its casino industry and revenue from it. Yet, Studio City is yet to establish itself as a desirable destination for non-gambling customers and this will certainly take a bit more time.
In the short-term, experts noted that outlook for Macau’s casino companies is quite uncertain. Longer-term prospects seem to be better and more tourists are expected to travel to the former Portuguese colony and opt for the non-gaming options offered there.
Macau’s Gaming Inspection and Coordination Bureau also reported on Tuesday that gross gaming revenue has dropped 35.3% in the first eleven months of the year as compared to the figures posted for the same period a year ago.
