Macau Gaming Revenues Continue Drop With 34.5% Decline In July
The continuing anti-corruption campaign in the world’s largest casino hub Macau is continuing to be felt by casino operators. The Macau government has released the figures for July which show a 34.5% drop in July gaming revenues from the same period last year. The drop was slightly better than the forecasted 36 percent which analysts had forecasted.
Gaming revenues fell to $2.3 billion as the once full VIP rooms are not seeing the high rollers who not along were a frequent fixture. Beijing’s intensifying crackdown on corruption led by President Xi Jinping has got gaming analysts pessimistic as to when we will see the light at the end of the tunnel. Union Gaming research analyst Grant Govertsen went on to say, “This anticorruption crackdown in China is much more widespread and deeper than the VIP community had anticipated and as a result there could be prolonged weakness in the market.”
The major casino stocks like Sands China, Wynn Macau, Galaxy Entertainment, SJM Holdings, Melco Entertainment and MGM China have all been hit hard with stocks falling between 10 percent and 28 percent.
Macau is still heavily reliant on gaming revenues and secretary for Economy and Finance, Lionel Leong has gone on record to say that should the situation deteriorate further he would look into implementing austerity measures.