Gambling revenue in Macau last month plunged 79.7 percent annually, the government said yesterday, as casinos reeled from a lack of visitors after the world’s biggest casino hub ratcheted up curbs to battle a coronavirus pandemic.
Operators Wynn Macau Ltd (永利澳門), Sands China Ltd (金沙中國), MGM China Holdings Ltd (美高梅中國控股), Melco Resorts & Entertainment Ltd (新濠博亞娛樂), SJM Holdings Ltd (澳門博彩控) and Galaxy Entertainment Group Ltd (銀河娛樂集團) are all bleeding between US$1.5 million and US$4 million a day to keep their properties running.
However, last month’s figure of 5.3 billion patacas (US$664 million), announced on the Web site of the Gaming Inspection and Coordination Bureau, was in line with analyst expectations for a drop of about 80 to 82 percent.
It was the sixth consecutive month of decline.
“Forecasts for 2020 remain largely guesses at this time, with constantly changing conditions altering expectations on an almost daily basis,” said Vitaly Umansky, an analyst at Sanford C. Bernstein in Hong Kong, who had forecast last month’s range.
Macau last week banned entry by visitors from mainland China — the largest source of VIP and mass gamblers — Hong Kong and Taiwan who have traveled overseas, following earlier bans on foreign visitors and non-resident workers.
Visitors from the greater China region account for more than 90 percent of tourists to Macau.
Although casinos were open throughout the month after a 15-day suspension of operations in February, visit and health restrictions hit revenues, analysts said.
The 14-day quarantine rule started by China’s Guangdong Province late last month, which JP Morgan said in a note on Friday last week was “effectively same as casino shut-down” for Macau.
With few flights in, almost every visitor was entering Macau through the land border in Guangdong.
Many analysts expect revenues to keep falling at the same pace, with some even forecasting almost no revenue while the curbs stay.
Macau said it expects a drop of 56 percent in annual gross gaming revenue this year to 130 billion patacas, down from 260 billion forecast last year.
Macau earns more than 80 percent of its revenues from casinos.
Additional reporting by Bloomberg
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