Macau Gambling Revenues Set To Fall Again In October
The world’s largest gambling hub Macau is set to break a record for the month of October. For the first time since the former Portuguese Colony has been keeping official records, gambling revenues are expected to fall for a fifth consecutive month. The main reason for this is the Chinese government’s crackdown on corruption which has been going on for two years now.
In the past VIP revenues accounted for a major part of Macau’s gambling revenues, but since the government crackdown data from the Macau Gaming and inspection bureau indicates that only about 56 percent of combined revenues for the third quarter are from this sector.
Another factor for declining revenues is the Chinese blocking access to Hong Kong after there were pro-democracy protests in the city. Macau relies on many small time gamblers from Hong Kong. To top it off the Chinese Government have also enforced tight visa regulations which shorten the number of days tourists can stay in Macau.
The bigger question is if the falling gambling revenues in Macau are just a phase or more worryingly a sign of the future trend for the $45 billion global gambling hub. Sheldon Adelson is of the opinion that the current problems in Macau are cyclical and long term forecasts predict massive growth. Adelson even got philosophical when recently asked about the future of Macau. He said,” It is only a matter of time before the cycle reverses itself, No one has ever suggested that the behavior of Chinese and Asian people, which has been established over a 3,000-year history, is going to change.” Adelson is not alone in his optimistic as there are plans to build another 8 casinos in Macau on the next three years.