The small territory of Macau has gradually become one of the world’s premier gambling destinations. Unfortunately, trade disputes between the US and China and the global pandemic has crippled the casino industry here. New reports have just come out that indicate gaming revenue in Macau is finally starting to increase again.
Casinos here have been struggling to attract players over the past few months. Even now, these properties are earning just a fraction of what they made in 2019. Today, we’re going to break down the slight revenue increase seen here over the past two months.
Let’s get into it!
August Marks a 95% Drop in Casino Revenue in Macau
Macau has been a world-class casino destination for decades. Over the past couple of years, however, this city has seen its tourism and revenue rates drop considerably. Most point towards the trade war between the US and China as the key reason for this drop.
As China’s economy slows, fewer nationals here are willing to make the trip to Macau. This led to a major drop in VIP’s visiting this city. Revenue continued to fall and many feared that things would never recover.
2020 has made things considerably worse. At the start of the year, officials in Macau ordered all of the city’s casinos to completely shut down. This didn’t last for long, yet it had a devastating impact on the local economy.
China has also been implementing intense travel restrictions into this territory. Some of those have recently been lifted. This still hasn’t resulted in a major influx of Chinese tourists. For a time, gambling revenue here was almost non-existent. Some money is now coming in and it’s far lower than what was being made last year.
We recently reported on Macau’s gambling revenue for the month of August. As we pointed out, revenue earnings here fell by an incredible 95%. It was a disappointing development for the casino companies here, many of which hoped Macau would be a saving grace this year.
Interestingly, new reports show that gambling revenue here is no longer plateauing.
Gaming Revenue in Macau Increases Month-to-Month
Nearly all of 2020 has been abysmal for Macau. Officials here are now doing everything they can to promote tourism and attract major VIP players. As we just mentioned, however, August saw a massive drop in casino revenue.
That doesn’t mean things aren’t getting better, though. New reports have come out that show a slight month-on-month revenue increase in Macau. It’s a good sign and could signify that things are beginning to turn around.
During the month of August, Macau earned $76.8 million via taxes from its gambling industry. That’s a jump of 52.4% when compared to the month of July. Most agree it’s an impressive increase for a city still struggling to bring in tourists.
Through the first eight months of 2020, Macau earned just $2.85 billion in gaming revenue. That’s far below what analysts initially predicted at the start of the year. Based on the current trend, the city will be left with a multi-billion dollar deficit by the end of 2020.
Fully reopening borders will be key in getting tourism to increase again. Of course, some fear that could lead to new spikes of Covid-19 in both Macau and mainland China. It’s a difficult situation and one that other major casino destinations around the world are dealing with.
Gaming revenue in Macau appears to be increasing. It will, however, take much more to get the city back to where it was last year.
Major US Casino Destinations Are Still Struggling, as Well
Things certainly seem bleak over in Macau. This is a city that relies almost entirely on its casino industry for revenue. It also employs a huge number of local residents, many of whom have seen their jobs drift away due to the low revenue figures casinos are seeing.
This is far from being the only major casino destination that’s struggling right now. Over in the US, land-based gambling revenue has taken a major dive in 2020. That’s true in Las Vegas, the top gaming destination in the country.
Some of the best casino-resorts in the world are located in Las Vegas. In March, Governor Steve Sisolak ordered all of the casinos in Nevada to close down. It wasn’t until June that gambling venues here were given permission to open up again. Things seem to be improving here, but much like Macau, revenue figures remain fairly low.
Atlantic City is faring slightly better. This city benefits from having a regulated online casino and sports betting market. It’s proving to be hugely successful. In fact, New Jersey just set a US all-time record for revenue earned from the sports betting industry.
All areas of the world that rely on land-based casino revenue are struggling right now. Not even the top analysts can accurately say when that will change. We’ll continue offering updates on different revenue reports over the next few months.
Are you surprised to see that gaming revenue in Macau has increased? Will this continue for the rest of the year? Let us know in the comments section below!
A longtime sports and gambling enthusiast, Kevin looks to present up-to-date and reliable information for readers. If he’s not writing, he’s probably watching MMA or playing blackjack. ...
The information found on Gamblingsites.org is for entertainment purposes only. It is a purely informational website that does not accept wagers of any kind. Although certain pages within Gamblingsites.org feature or promote other online websites where users are able to place wagers, we encourage all visitors to confirm the wagering and/or gambling regulations that are applicable in their local jurisdiction (as gambling laws may vary in different states, countries and provinces).
Gamblingsites.org uses affiliates links from some of the sportsbooks/casinos it promotes and reviews, and we may receive compensation from those particular sportsbooks/casinos in certain circumstances. Gamblingsites.org does not promote or endorse any form of wagering or gambling to users under the age of 18. If you believe you have a gambling problem, please visit BeGambleAware or GAMCARE for information and help.