Macao’s revenues are falling, but there is a glimmer of hope…
Let’s face it, Macau’s casino gaming industry is like a soap opera with many twists and turns. The last time I checked, the revenues of operators on the peninsula bordering China have been steadily falling since last summer. In addition, some gaming equipment suppliers have recently announced that they will simply leave the former Portuguese enclave.
In other news, we now learn that Macau’s 40 or so casinos had a particularly disappointing September. Their Gross Gaming Revenue (GGR) fell 49.6% year-on-year to just over $366.33 million.
Macau casinos: poor results in September 2022, although…
According to a recent article published by our colleague Inside Asian GamingMacau’s casino revenues have not been stellar, despite a 35.30% sequential increase for the September period over August, when PBJ was only $270.73 million.
According to the source, the most recent result recorded was. best since May 2022 ($413.19 million) and is 10.60% higher than the April 2022 result ($331.07 million).
Another predominant media in Asia, GGRAsia, meanwhile, reports that the September result brings Macau’s aggregate gross casino revenue for the third quarter of 2022 to about $686.37 million, down more than 70 percent from $2.32 billion for the same period in 2021.
The decline of the largest international companies in Macau
Macau is home to some of the world’s largest and most prestigious casinos, which are operated by Wynn Macau Limited, MGM China Holdings Limited, Sands China Limited, Melco Resorts and Entertainment Limited, SJM Holdings Limited and Galaxy Entertainment Group Limited.
The September tally shows that the establishments managed by these companies have recorded just over $3.93 billion in cumulative gross revenues – in the gaming segment alone – since the beginning of the year. However, this amount is lower by 53.10% from the $8.38 billion generated year-over-year.
Note that daily arrivals to Macau in September 2022 are about 20,000, far below the 108,000 arrivals recorded in September 2021. There is some hope on the horizon, however, as Macau’s Chief Executive, Ho Iat Seng, announced last week that his government is currently considering measures to resolve the various problems affecting the tourism sector in the enclave.
Thus, there would likely be talk of reinstating local flat-rate travel and electronic visa systems. Discussions with the Chinese central government are currently in full swing.
