Industry News | 02 May 2022

Reduction in April's total gross gaming receipts in Macau

 

The combined total gaming revenues for the more than 40 casinos in Macau allegedly fell by more than 68% year over year in April, reaching a 19-month low of little over $331.19 million.

 

The disappointing result equated to a slump of 27.1% when compared to the finishing tally of about $454.28 million for the previous month, according to a report from GGRAsia, which cited official information from the enclave's Gaming Inspection and Coordination Bureau regulator. It also represented the meanest since the roughly $273.54 million chalked up for September of 2020. The source explained that the April total was likewise almost 65% less than the estimated $959.87 million for February and nearly 58% less than the $784.84 million estimate for January.

 

Crashing continues:

 

In addition to the regional Wynn Macau Limited and Sands China Limited subsidiaries of Wynn Resorts Limited and Las Vegas Sands Corporation, respectively, Macau is home to some of the largest and most prestigious casinos in the world. These establishments are run by MGM China Holdings Limited, Galaxy Entertainment Group Limited, Melco Resorts and Entertainment Limited, and SJM Holdings Limited. According to the April statistic, these several establishments' cumulative gross gaming revenues for the last four months have fallen by 36.1% compared to the same period last year, totaling slightly over $2.53 billion.

 

Pandemic drop:

 

According to GGRAsia, several financial analysts had previously expressed concern that Macau's casino sector will probably have a slow April due in large part to the persistence of a number of coronavirus-related travel restrictions for anybody trying to enter or leave mainland China. According to reports, the international investment research firm Sanford C. Bernstein Limited even went so far as to claim in a recent note that due to disease outbreaks in China and ongoing "restrictive travel and border controls," the number of visitors arriving in the former Portuguese outpost will continue to be "largely subdued."

 

Evil melancholy

 

Going forward, Inside Asian Gaming said in its own study that the recent coronavirus epidemic in the adjacent Chinese city of Guangzhou will probably have a significant negative influence on Macau's short-term aggregated gross gaming revenues. Despite the 25 million inhabitants of the metropolis being under a strict lockdown since late March, this allegedly happened after a similar outbreak of the same virus in Shanghai.

 

Optimistic timing

 

Inside Asian Gaming, however, also noted that Macau's total gross gaming income totals may soon start to profit from the city's New Coronavirus Response and Coordination Center's recent relaxation of border restrictions for visitors coming from neighbouring Guangdong Province. The validity time for necessary negative coronavirus tests was allegedly raised to 48 hours starting on April 20 before being subsequently extended to 72 hours just four days later.