Casinos in Macau is in a difficult situation. However, it’s getting worse and worse as its GGR continues to plunge. The year on year Gaming Gros Revenue fell 94.5% In July. Let’s take a look at what’s behind the terrible statistics over the current global disaster.
The latest gambling news pays a lot of attention to Macau. Last summer, you could read about the record revenue of the Macau casinos. But this year we can even assume the end of Macau gambling. Asia’s industries are changing so fast, that it’s nearly impossible to make a conclusion about why the things happening and what can we expect even in the not too distant future. Anyhow, we will try our best!
What Made Casinos in Macau so Special?
Macau is the empire of opulence. The lights, the colors, and the indescribable level of luxury in the hospitality sector attracted a lot of wealthy businessmen and the ones who have so high standards that even Vegas Casinos count a pigsty for them.
And what paired with the spectacular buildings and shows are the special offers for high rollers. Casinos in Macau was heaven for them. While making a million bet in Vegas requires so much paperwork and formalities, that it will take a week. While in Macau, it’s just a regular wager after breakfast.
What Made the Plunge of the Macau Gambling Industry’s GGR?
Anyhow, even if there was spiker in Macau’s GGR, the year on year numbers shown a few percent fall or rise every time. Then, 2020 has come. We don’t have to explain how the pandemic ruined the casino industries all around the globe. For example, casino reopening in the UK is still delayed just like in many other countries.
On the other hand, casinos in Macau have to face other problems over the current challenges. The strict visa restrictions, the slowing Chinese economy, the political scandals, the death of Stanley Ho, and the trade war with the USA also have a significant effect on the area’s GGR. These are serious problems, and no one really knows when and how it will be solved.
Another aspect is the strong presence of Suncity, the biggest junket operator in the region. They literary took over both the offline and online gambling markets according to state-backed reports. In response, all the big operators try to cooperate with Suncity, to make a sustainable gambling industry in the SAR. However, only time can decide, how will Suncity act in the reflection of the current financial disaster.
The Statistics Picture that Casinos in Macau will continue suffering
Last July, casinos in Macau and the local gambling industry generated more than 3 billion dollars in local currency. In previous years, the usual drops and rises were around 3%. So even if the market faced difficulties, it was controllable and predictable.
In this July, Gros Gaming Revenue was 168 million dollars. Which means a 94,5% drop. We can expect a slight growth in the next months as non-tourist visas will be resumed from the 12th of August. So, Casinos in Macau keep up the communication with the Chinese government to save the gambling industry in the SAR.
In summary, it’s a terrible year for all the casinos in Macau. As global tourism and the Chinese economy facing walls, they don’t really have any chance to stay on foot. However, there is still a glimmer of hope, since Macau is important for the region’s economy. So, we can expect some financial and political backup from SAR and China itself.