Macau’s gaming revenue fell 2 percent last month, missing analysts’ expectations as scrutiny over gambling activities tightened during Chinese President Xi Jinping’s (習近平) visit to the world’s biggest casino hub.
Gross gaming revenue reached 18.2 billion Macau patacas (US$2.3 billion) for the month, according to data released by the Macau Gaming Inspection and Coordination Bureau yesterday. That compared with the median analyst estimate of a 2 percent year-on-year increase and is still 20 percent lower than the pre-COVID-19 pandemic level in 2019.
Last month’s figures bring the territory’s total gaming revenue for last year to 226.8 billion patacas, up 24 percent from the year before and returning to 78 percent of the 2019 level.
Photo: Bloomberg
Xi’s three-day visit to Macau — his first since 2019 — that ended on Dec. 20 means security checks tightened significantly during the time, denting sentiment among frequent gamblers and big spenders from China, which is the biggest source of the territory’s tourism spending.
In a speech during his visit, Xi urged Macau to continue its economic diversification, boosting policy support and investment to cultivate new industries with international competitiveness.
The Chinese leader spoke after swearing in Sam Hou-fai (岑浩輝) as the chief executive of the territory on the 25th anniversary of its return to Chinese rule.
China’s crackdown on high rollers to curb capital outflow has accelerated the decline of Macau’s VIP gambling sector, which before the pandemic contributed about half of the territory’s gaming income. As a result, casinos are rolling out more conferences and entertainment events to attract mass-market tourists to make up for the loss.
Analysts expect gaming revenue to return to 82 percent of the pre-pandemic level this year, with income from the mass-market sector growing to 118 percent of the 2019 level, while the VIP sector might still be down 60 percent.
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