Macau Gaming Revenues Fall For Thirteenth Consecutive Month In June
The decline in gaming revenues in Macau have broken records once again. For the thirteenth consecutive month revenues in June fell to a record five year low with no signs of recovery in sight. Revenues in June fell by 36.3 percent to $2.18 billion according to the Macau Government. The decline was less than the analyst’s prediction of 39-40 percent.
The reasons for the record declines are mainly due to President Xi Jinping of China enforcing a crackdown on corruption and illegal money flowing out of China. The situation in Macau is so bad that according to local media the government might launch austerity measures as gaming revenues make up about 80 percent of Macau’s economy.
To make matters worse the Macau government also proposed a full smoking ban which would further effect gaming revenues. This according to experts can result in a VIP decline of anything from 10-25 percent.
In response to the now permanent declines, Macau casinos are being forced to adapt their casinos to resort type facilities that are aimed at tourists and not solely gamblers. China has stated that besides their intention to crack down on corruption they also want to ensure that Macau diversifies in the long run and not remain so heavily dependent on gaming revenues for their economic growth.