Casinos struggling to recover
Gaming revenue for Macau casinos was down 80% in March compared to the same period last year. These figures have been released as the region’s gambling and hospitably sectors look to recover from the coronavirus pandemic.
Macau’s casino gaming revenue totaled $657.5m in March 2020
The Macau Gaming Inspection and Coordination Bureau released these figures on Wednesday. The report states that Macau’s casino gaming revenue totaled $657.5m in March 2020, a decline of 79.7% when compared to March 2019. Since the beginning of the year, gaming revenue has been down by 60%.
Glimmer of hope
There were some encouraging signs that a recovery is taking place in Macau. March’s figures were higher than the $387m reported in February when casinos had to shut down for a 15-day period. This was the worst month for Macau casinos ever.
Gamblers are returning to the gaming tables slowly but surely. Reports suggest that about 80% of the casino tables were operational following the shutdown in February. Social distancing protocols remain in place for these gaming tables and facilities as a whole.
Gamblers staying away
While mainland China has largely curtailed the coronavirus pandemic that has been affecting most nations in recent times, people are still staying home and not visiting Macau. Chinese authorities want to minimize unnecessary travel as much as possible to prevent another outbreak in the region.
Most of the gamblers that come to Macau from mainland China are from the Guangdong province. There are still strict quarantine restrictions on anyone going from Macau back to this province, which acts as a deterrent for travel.
Turbulent times ahead
Operators across the city are feeling the effects of lower revenues and visitor numbers. Some junket operators may have to lay off workers and others will end up folding completely.
Morgan Stanley analysts estimate that Macau’s revenue problem may not improve until October
The bigger companies are also hurting, with many senior management members taking pay cuts, and some mid-level workers taking unpaid leave.
Morgan Stanley analysts estimate that Macau’s revenue problem may not improve until October. With the local economy relying heavily on the casino industry for revenue, turbulent times lie ahead for the region.
Casino companies across the world are dealing with similar issues as a result of the pandemic. Casinos in the United States have shut down operations. Major casino companies like MGM Resorts, Wynn Resorts, and Caesars Entertainment have watched their share prices tumble as a result.