The small Chinese territory of Macau has been one of the world’s premier gambling destinations for decades. Unfortunately, the events that unfolded throughout 2020 took a devastating toll on the city’s economy. New reports claim that Macau’s yearly revenue fell below what many analysts anticipated.
It’s bleak news for the casino companies that operate here. There’s reason to be optimistic about the future, though. Today, we’ll take a look at the revenue reports for the year and discuss how 2021 might be different.
Let’s check it out!
The World’s Land-Based Casino Industry Changed Last Year
For the past couple of decades, land-based casino destinations around the world have been flourishing. Places like Las Vegas continued to expand. Macau saw its tourism and revenue rates increase almost every single year.
Things seemed to be going extremely well for major casino companies. Beginning in early 2020, however, this industry took a turn that no one could have anticipated. Many began to realize how serious things were becoming when Macau ordered all of its casinos to temporarily shut their doors. Revenue quickly began to plummet.
In March, officials in Las Vegas did the same. It was a completely unprecedented situation. These two places are known as the world’s largest gambling hubs. Never before have the casinos in these cities been completely shut down.
Incredibly, this industry still has not recovered. Despite the best efforts from city officials and casino owners, gambling revenue remains down around the world. Most people are simply choosing to avoid visiting land-based casinos in the situation the world finds itself in.
Analysts are hopeful that 2021 brings things back to normal. Could that be wishful thinking? Of course. There’s always a chance that things never completely get back to the way they were in 2019. That doesn’t mean casinos won’t fight to thrive, though.
There’s been a huge amount of attention placed on Macau lately. We’re now finally beginning to hear how much money the casinos here brought in last year.
Here’s a Look into Macau’s Yearly Revenue Figures
Back in 2019, many felt that 2020 would be a hugely successful year for the city of Macau. This territory is home to many of the biggest and best casino-resorts on the planet. Tourism numbers were high and everyone seemed to feel that revenue would surge throughout the year.
Obviously, this did not turn out to be the case. In fact, 2020 ended up being the worst economic year for this territory to date. Late last week, reports on Macau’s yearly revenue figures were finally released to the public.
Earlier in the year, some felt that Macau would end up being a valuable city for many casino operators. The thought was that this territory would recover significantly faster than major US gambling hubs. The reverse ended up being true.
It’s tough news for companies such as Las Vegas Sands and Wynn Resorts. Both have major casino-resorts in this city. Interestingly, revenue here increased towards the end of 2020. Many feel this is great news for this city in 2021.
No one really knows what to expect next year. We have a few hints, though.
Gaming Revenue Began to Increase in Final Months of 2020
It’s easy to see Macau’s yearly revenue and be concerned. A 79% drop in revenue is substantial and shows how difficult things are here. In the final few months of 2020, however, casinos began seeing an increase in their revenue earnings.
Gross gaming revenue during December was 65.8% lower than in the same month in 2019. Interestingly, this also proved to be the second-best month of the year for Macau’s casinos. Most of the major casinos here saw their earnings increase when compared to months prior.
The city’s officials are now doing everything they can to lure in gamblers. This is proving to be extremely difficult right now, though. The government here recently began implementing tougher restrictions due to the new UK virus strain now spreading around the world.
It’s unclear how long these regulations will remain in place. This will certainly make it tough for the casino industry in the city. It will be fascinating to see how long it takes for tourism numbers to reach 2019’s levels.
Analysts remain cautiously optimistic about the future of Macau. We remain in unprecedented times and the future remains unclear. We’ll continue offering updates on the economic situation here over the next couple of months!
Are you surprised to see where Macau’s yearly revenue stands? What do you expect for this city in 2021? 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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