We’ve been reporting on the fluctuating casino revenue in Macau for years. Obviously, the gambling venues here have been struggling immensely this year. New reports have come out that show Macau’s casinos lost out on over $800 million during the third quarter of 2020.
It’s a staggering loss for one of the world’s largest gambling destinations. Fortunately, many analysts predict that things will begin to improve here over the next few months. Today, we’ll look at what exactly led to this massive revenue drop.
Let’s get into it!
Officials in Macau Work Hard to Attract High Rollers
For decades, Macau has been one of the premier gambling destinations around the world. Gambling in Mainland China is strictly prohibited. In Macau, one of China’s territories, most forms of traditional gambling are perfectly legal, though.
This city quickly became the gambling hub for Chinese nationals. It didn’t take long for several world-class casinos to open their doors here. Even some of the biggest US casino operators now own many casino-resorts in Macau.
The events that have been unfolding this year have obviously made things worse. In February, Macau’s casinos were forced to close down. Officials in Mainland China then ordered a travel ban to and from this popular gambling destination.
With these travel restrictions now lifted, tourism is slowly beginning to increase here once again. Macau’s leaders are now working extremely hard to bring in high-rollers to the city. Historically speaking, these VIP players are responsible for bringing in a huge amount of revenue to the city.
Macau’s Casinos Lost Out on $823 Million Last Quarter
Everyone knew that the casinos in Macau have been hurting this year. We’re now starting to hear just how much the gambling venues here lost through July, August, and September. It’s considerably more than many initially predicted.
According to new reports, Macau’s casinos posted losses of $823 million during 2020’s third quarter. This is before calculating tax, interest, etc… Overall, it seems that casino revenue here fell by more than 90% over the past six months. It’s the largest drop in the history of the territory’s gaming industry.
Some casinos here managed to fare slightly better than others. Below is a list of the casinos and their year-on-year quarterly revenue drop.
Sands China: -132%
Wynn Macau: -144%
Melco Resorts: -129%
MGM China: -150%
Galaxy Entertainment: -127%
SJM Holdings: -171%
As we mentioned earlier, things do seem to be slowly improving here. With travel restrictions into China now lifted, the casinos here are seeing a steadier stream of players coming in. The recent “Golden Week” holiday brought in 84% fewer tourists than usual, though.
It will be interesting to see how things change in 2020’s fourth quarter. Some fear that Macau won’t truly return to normal for years. Stay tuned for more updates as the months go on.
US Casino Revenue Continues to Fluctuate
Macau was the first major gambling destination to force its casinos to shut down. It took over a month for US casino companies to begin closing down their properties. Many analysts believed that Macau would end up being a source of valuable revenue for these US casino companies.
That has not proven to be the case. It’s clear that the casinos here are still having a difficult time bringing in players. Casino revenue in the US is actually increasing rapidly in some areas. There are a few reasons why this is.
Las Vegas is still hurting, though. Nearly all of the major casino-resorts here are now open to the public. Unfortunately, tourism rates are still dropping here and casinos are posting large revenue drops. Some are even being forced to adjust their opening days to save money.
Macau’s casinos will need time to recover. It seems unlikely that any of the major gambling venues here will be forced down permanently. Anything is possible, though.
Are you surprised to hear how much casino revenue dropped in Macau last quarter? When do you expect the city to get back to normal? 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. ...
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